An Empirical Analysis Of Bonds Issuing Company Credit Risk In China

China’s bond market has made rapid development with the development of the financial industry in recent years. More and more enterprises issuing bonds and raising funds on the bond market, the variety and quantity of the bonds have increased greatly. Investors will bear the potential loss due to the issuer’s default when they gains by buying bonds. As the focus of attention of participants in the bond market, credit risk assessment of the bonds issuing company has great influence on the interests of investors, bond market development, and the normal operation of the national economy. A credit risk model is established in the thesis to assess the credit risk of the bond issuing. A variety of factors affecting the company’s credit risk and the quantitative analytical methods are used to establish the model, which provide a reference for investors and regulatory authorities to measure the credit risk on the market and promote China’s bond market a healthy, orderly, and stable development.A brief introduction of credit risk theory and current situation of China bond market are listed according to existing research results. The bond market structure is analyzed in different aspects of issuers and bond varieties. The credit rating of economic theory and rating methods of the mainstream rating agencies are introduced. The development and application of the credit risk analysis techniques in developed countries and China is analyzed, the credit risk of bond issuing company is evaluated by constructing a BP neural network model. Data quoted from bond issuing companies which had the credit rating in2011is taken to build an appropriate credit risk assessment index system as a sample model. Finally, a conclusion is drawn by calculation and test, and the limitations of the model as analyzed as well.It is verified that the12selected financial indexes basically reflect the credit risk status of the bond issuing company, the evaluation model can help reasonably assess of the credit risk, both of which have a better assessment and short-term prediction function.