Research On Liquidity Difference Of Corporate Bond Between Inter-bank Market And Exchange Market

Liquidity is the lifeblood of the corporate bond market development, Liquidity plays adirect impact on the efficiency of corporate financing and financial functions of corporatebond market. In recent years, corporate bond market in China has developed rapidly. Thecorporate bonds issued and traded in both market takes more and more proportion. But theinter-bank corporate bond market and exchange corporate bond market are mutualsegmented. The problem of liquidity deficiency and liquidity imbalancehas seriously hindered the healthy and fast development of corporate bond market, and haseduced the efficiency of the operation of the market. Therefore, to perform function offinancing and function of allocating, research on liquidity problem of corporate bondmarket is necessary.Based on the work of predecessors, this article uses theoretical research andempirical analysis method to conduct a comparative analysis of liquidity level, liquidityfactors and interactive relationship. First, this article selects Amivest liquidity ratio tomeasure liquidity level and conduct descriptive statistical analysis. Second, this articlebuilds a panel data model to analyze liquidity factors from three aspects, includingexternal environment, characteristics of issuers and corporate bonds. Last, this article usesa Granger causality test to examine the liquidity correlations.The results show that: Liquidity level differences between the two markets. Inter-bankcorporate bond market has higher liquidity level. There are marked differences between thetwo markets on the effects of stock indexes, bond balances and remaining life. Basedon empirical results, this article analyzes liquidity difference and its causes.At last, we give some corresponding suggestions to build a unified and efficient marketwith high liquidity.