On September 18, the Shanxi Provincial Department of Finance successfully issued RMB 8.8208 billion in the province's eighth batch of government bonds for this year on the Shanghai Stock Exchange. This issuance includes RMB 3.8608 billion in new bonds and RMB 4.96 billion in refinancing bonds.

The bonds feature maturities spanning 5, 10, 15, 20, and 30 years, with an average interest rate of 1.78% and an average bid multiple of 22.74 times. With this issuance, the province's cumulative total of government bond issuances has reached RMB 161.781 billion.

Since the beginning of the year, the Provincial Department of Finance has diligently implemented the directives from the provincial party committee and government regarding enhancing the quality and efficiency of local bond issuances. It has been executing a more proactive fiscal policy, consistently strengthening the foundation for bond issuance, innovating issuance models, continuously improving the level of scientific fiscal management, and deepening the synergy between fiscal and financial operations. These efforts are aimed at supporting the steady and positive economic development of Shanxi as the province embarks on its 15th Five-Year Plan.

With active guidance from the Ministry of Finance, the department achieved a milestone by successfully issuing its first-ever callable land reserve special bond, amounting to RMB 131 million. This bond has a 3+2 year term and a winning interest rate of 1.47%. A callable bond is a type of bond that includes a redemption option within its contract. The Provincial Department of Finance can choose to exercise the redemption right in the third year or make a single principal repayment upon maturity in the fifth year, depending on the revenue performance of the project corresponding to this bond.

The successful debut of this callable bond has had dual benefits. On one hand, it has strengthened the underwriting willingness of financial institutions. Callable bonds typically have a shorter effective duration compared to ordinary bonds, while maintaining nearly identical coupon rates, creating a certain premium space. This has stimulated market allocation and trading activity, leading to continuous improvements in bond liquidity.

On the other hand, it has achieved a rational match between project returns and bond maturities, effectively enhancing the efficiency of fiscal fund allocation. By flexibly arranging the maturity structure, the department has tangibly improved the refined management level throughout the bond's duration.