The opening-up of the bond market proceeds mainly through three channels: • Bond Connect’s ‘Northbound Trading’ — overseas investors trade bonds in China’s interbank market via infrastructure connectivity between Hong Kong and mainland China. In August 2026, monthly trading volume reached RMB 803.9 billion, with an average daily turnover of RMB 3.83 billion; by month-end, 844 overseas investors had entered the market. Policy bank bonds accounted for 58% of traded volume, government bonds for 22%, and 7–10-year maturities for 51% — indicating stronger overseas investor interest in medium- to long-term instruments. • Swap Connect — enables overseas investors to participate in RMB interest rate swaps in the interbank market to manage interest rate risk. In August 2026, Northbound Swap Connect recorded 906 trades, with a total notional principal of RMB 543.101 billion; cumulatively, 99 overseas institutions had joined the program. • Direct Market Access — overseas institutions may enter the interbank market via the settlement agent model. As of end-May 2026, there were 633 overseas institutions (counted on a legal-entity basis). As of end-March 2026, foreign institutional holdings of Chinese bonds totaled RMB 3.2 trillion, representing 1.6% of total bond custody volume in China. Though this share remains modest, its growth potential and strategic significance are substantial. Section IV: Bond Valuation I. Principles of Bond Valuation The core idea behind bond valuation is simple: a bond’s intrinsic value equals the present value of all its future cash flows. Where: = bond’s intrinsic value; = coupon payment in period ; = face value; = discount rate (typically the market interest rate or the investor’s required rate of return); and = remaining number of periods. This formula reveals two fundamental pricing principles: 1. Bond prices move inversely with market interest rates — when market rates rise, the discount rate rises, reducing the present value of future cash flows and thus lowering bond prices; conversely, prices rise when rates fall. This is the first iron law of bond investing. 2. Longer maturities imply greater price sensitivity to interest rate changes — identical rate shifts cause larger price fluctuations in long-term bonds than in short-term ones. This is the conceptual origin of duration. II. Key Factors Affecting Bond Value These factors fall into internal and external categories. (A) Internal Factors Factor Direction of Impact Maturity Longer maturity increases exposure to interest rate volatility and price uncertainty. Coupon Rate Higher coupon rates generate larger interim cash flows, lowering price sensitivity to interest rate changes. Call Provision A call option benefits the issuer but disadvantages investors, thereby reducing bond value. Tax Treatment Tax-exempt bonds offer higher after-tax yields; valuations must adjust for tax effects. Liquidity Better liquidity reduces required liquidity premiums, increasing value. Credit Rating Lower credit ratings demand higher credit risk premiums, raising the discount rate and lowering value. (B) External Factors • Market Interest Rates — the most critical external variable, moving inversely with bond prices. • Inflation — rising inflation expectations push up nominal interest rates, depressing bond prices. • Exchange Rates — for foreign-currency bonds, exchange rate fluctuations directly affect investors’ domestic-currency returns. III. Bond Quotation vs. Actual Payment Price Quoted price and actual payment price are two distinct concepts, differing by accrued interest. Why distinguish clean price from quoted price?

Completely legendary! ❗ The higher the bond yield, the more money you lose? Explained thoroughly with buyer-seller博弈 + formulas 🔥

99% of novice investors get misled: Seeing bond yields surge, they think it’s a golden opportunity to scoop up bargains! The reality is exactly the opposite: A surge in yield ≠ profit opportunity A surge in yield = sharp bond price decline = capital loss! Bonds never trade on the present — they trade on the entire market’s forward-looking expectation game. Today, using an intuitive 10% high-coupon example + psychological buyer-seller dynamics + line-by-line formula calculations, we’ll explain it all — once and for all ✅ I. What Exactly Is a Bond? A bond is a standardized IOU issued by governments or corporations, with contractual terms guaranteeing fixed interest payments and repayment of principal at maturity. Key point: Once issued, bonds can be freely traded in the secondary market. Thus, bond prices are not fixed — they reflect real-time price discovery driven by the collective capital博弈 between buyers and sellers. II. Coupon Rate vs. Yield to Maturity (YTM) — Confused by 99% of People 1⃣ Coupon Rate [Fixed & Immutable] Locked in on issuance day — never changes thereafter. Formula: Coupon Payment = Face Value × Coupon Rate 🌰 Uniform Example (used throughout): A bond with face value RMB 100 and 10% coupon rate, maturing in 1 year. Annual fixed interest: 100 × 10% = RMB 10 Fixed maturity payout: RMB 110 ⚠️ Regardless of subsequent surges in inflation or Fed rate hikes, your old bond will *always* pay only RMB 10 in interest! 2⃣ Yield to Maturity (YTM) [Real-Time & Volatile] Definition: The true annualized return if purchased *now* and held to maturity. Universal Core Formula: Current Bond Price = (Maturity Principal + Interest) ÷ (1 + Market Yield) Financial Iron Law (memorize this): ✅ Bond price falls → Yield rises ✅ Bond price rises → Yield falls III. Root Cause of Losses in Bond Markets: Focusing Only on the Present, Ignoring Expectation-Based博弈 Core Truth of Capital Markets: All market activity trades *the future*, not the present! Complete Logical Chain: Rising inflation → higher prices → currency depreciation Market anticipates: inevitable future rate hikes → new bonds offering higher yields Investors grow disenchanted with low-yielding old bonds Large institutional players collectively sell off Excessive selling pressure → bond prices drop → yields surge passively ⚠️ Crucially: no actual rate hike is needed — merely the *expectation* of one triggers an early, sharp bond price decline! IV. Formula Calculations Across 3 Scenarios | Full Buyer-Seller博弈 Psychology Uniform Premise: You (seller) bought the old bond for RMB 100; you’ll receive RMB 110 at maturity. Market buyers (buyers) evaluate solely on current value-for-money — they ignore your original cost. Scenario 1: Stable Market | No inflation, no rate-hike expectations Fair market yield = 10% Current price = 110 ÷ 1.1 = RMB 100 ✅ Buyer psychology: New and old bonds offer identical yields — willing to buy at par. ✅ Seller psychology: No selling pressure — no need to discount to offload. ✅ Final outcome: Guaranteed RMB 10 gain; market equilibrium. Scenario 2: Mild Inflation | Early rate-hike expectations (yield = 12%) Market anticipates future hikes → new bonds will offer higher yields. ✅ Buyer psychology: I can now buy new bonds yielding 12% — no way I’ll overpay for your 10% old bond. Not worth it! ✅ Seller psychology: Want to liquidate, but no one will pay full price — forced to lower price to attract buyers. Current price = 110 ÷ 1.12 = RMB 98.2 ✅ Profit/Loss Breakdown: Capital loss: –RMB 1.8 Fixed interest income: +RMB 10

WLK4481120 Bond Profile: Coupon and Redemption

1 day ago

Westlake Chemical Corporation details its bond WLK4481120, offering a fixed 5.00% semi-annual coupon on an outstanding principal of $700 million USD. The profile outlines key terms including issue dates, maturity, and redemption schedules.

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