CHINA: Country Wrap: Focus on BRIC Strengthens

Asia-Pac flow of note came in the TUV5 103.75 puts, with paper paying 0-04+/05 over several clips.

• China’s infrastructure investment is gaining momentum in 2025, driven by an increase in issuance of of local government special bonds according to an article in the Securities Daily.  Year to date infrastructure investment rose over 3% YoY, outperforming the 1.6% growth by overall investment, report cites data by the National Bureau of Statistics .  Local government issuers issued new special bonds totaling 2.8369 trillion yuan ($395 billion) this year, up 39.7% from the same period in 2024, report cites data provided by Wind.  (source China Securities Daily)
• Local governments are increasing efforts to stabilize the real estate market by optimizing housing policies and accelerating urban renewal initiatives, Shanghai Securities News reported, citing analysts.  Urban renewal has become a pivotal turning point in city development. By upgrading existing assets and stimulating domestic demand, it helps reinforce market stability and supports the transformation of the real estate industry: industry experts  (source Shanghai Securities)
• China's major bourses have started the week off positively with the Hang Seng up +0.62%, the CSI 300 +1.5%, the Shenzhen Comp +1.2% and Shenzhen up +2%.
• Yuan Reference Rate at 7.1322 Per USD; Estimate 7.1812
• The CGB10 year continues to drift higher, following on from moves on Friday. Having finished Friday at 1.74%, it is up +3bp today at 1.77%, the highest level of the month.