Study On Liquidity Measure And Influencing Factors Of Bourse Enterprise Bond Market

With the continuous development of economic globalization, the competition between countries is actually the competition between the capital markets. Corporate bond market as an important part of capital market has played a more and more significant role on improving the capital structure, reducing the company’s borrowing costs, solving the financing problems of small and medium enterprises, optimizing the structure of the company capital structure and reducing the risk of financial system and so on. Since liquidity is the vitality of a corporate bond market, the developmental level of a corporate bond market largely depends on the level of market liquidity. A good liquidity can make investors trade at a reasonable price rapidly, contribute to resource allocation and help corporate bond market taking full advantage itself. As the liquidity plays a significant role in securities market, international and domestic scholars made a lot of researches on it. Since the research directions and purposes are different, and scholars define liquidity from different angles, so far there is no unified recognization of liquidity.This essay analyses some theories of liquidity to find out that liquidity of securities market means that large amounts of transactions can be made in the securities market without big effect on securities prices. For that liquidity’s attribute is 4 dimensional(Width, Depth, Resiliency, Immediacy) and conflicts exist between each attribute, there is no index which can accurately measure liquidity and be widely accepted till now. Most scholars measured liquidity from a single dimension before, but this essay selects 6 indexes that are applicable to Chinese bourse enterprise bond market, building an integrated index to take comprehensive measurements of liquidity. According to BIS’s research, the influencing factors include breed structure, investors’ behavior and microstructure of market. In a certain corporate bond market, transaction mechanism and investors’ behavior usually have consistency, and the influencing factor mainly is the features of bond breed, This essay focuses on enterprise bond’s characteristics to study their affects to market liquidity.