After the "Shanghai Shenhong" and "Yunnan Urban Investment" incidents, the market is filled with pessimism about urban investment bonds. For corporate bonds, since the central bank raised interest rates in October 2010, the issuance interest rate has increased from around 4.3% to 6.9% in early December.

In the face of continuously record high interest rates, industry insiders analyze that there are two main reasons: First, my country’s monetary policy has shifted from moderately loose to prudent, and the People’s Bank of China has repeatedly increased the deposit reserve ratio and deposit and loan benchmarks. Interest rates; another reason may be investors' concerns about local government debt risks and urban investment bond risks and trust networks, resulting in higher risk premiums for urban investment bond issuance.

In response, officials from the National Development and Reform Commission immediately responded that the accumulated debt of my country's local governments is generally controllable relative to their solvency.

However, the official response did not change the market’s concerns about the risks of urban investment bonds. Urban investment bonds experienced a "Black July", and no urban investment bonds entered the issuance cycle. On August 18, the "11 high-tech bonds" that barely broke through the siege had an issuance interest rate as high as 7.82%.