Research On Debt Finance Of Non-financial Enterprises In The Inter-bank Bond Market

Debt Financing Instruments of Non-financial Enterprises available in China's bond market consist of Short-Term Financing Bill, Medium-Term Notes, Enterprise Bond, Corporate Bond, Convertible Bond, Exchangeable Bond, and Warrant Bond. Basically, this dissertation will focus on those which are issued, circulated and traded in China's Inter-bank Bond Market, i.e. Short-Term Financing Bill and Medium-TermNotes up to now.In Chapter II and Chapter III, firstly, we give a brief introduction to several concepts relevant to Debt Financing Instruments of Non-financial Enterprises, and the development of respective markets, as well as Institutional Economics Theory which will be the main methodology thereinafter. Secondly, we explain how the "venue" of China's bond markets has been transferred to the Inter-bank Bond Market from the Stock Exchange Bond Market. Then we analyze on the three stages of such changes as well as the process of Pareto improvement. Also we identify the reasons for the institutional changes, the selection of the path and the role of the participants. The usage of Institutional Economic Theory upon Debt Finance of Non-financial Enterprises in the Inter-bank Market is the first advantage of this paper.Chapter IV and Chapter V are relatively more positivistic, which apply an array of empirical data analyses. In order to find out the factors which exert influence on credit spread of Short-Term Financing Bill, We scrutinize the data of issuance and of the first day to be listed. The outcomes turn to be credit rating, issuing term, issuing scale and so on. Meanwhile, Enterprises' credit rating ranks are significantly correlated to not only its nature and size, but also the industry thereof. Subsequently, we take advantage of the data collected in less than a year to analyze Medium-Term Notes. Besides the aforementioned factors, the time of issuance is also crucial to the issued interest, mainly because it has been less than a year since the Medium-Term Notes had been introduced and hence the samples of data are insufficient. Moreover, the vicious charges in economy in such period led to sharp fluctuations in interest rates. So a variable reflecting the market's expectations should be taken into account. The empirical analysis of Short-Term Financing Bill and Medium-Term Notes is the second advantage of this paper.By such theoretical analysis and the empirical analysis, we can easily reveal the problems laid beneath the Inter-bank Market for Non-financial Enterprise Bond, including the insufficiency of market-oriented in pricing mechanism, the lack of anticipation of small and mid-sized private enterprises, the inadequacy of market risk control methods, and to name but a few. As a conclusion, we give some practicable advices to prompt and regulate the development of Debt Finance of Non-financial Enterprises in the Inter-bank Market.