Research On Impact Of Macroeconomic Factors On Inter-bank Bond Market And Exchange Bond Market

In recent years, with the rapid development of China’s bond market, bond market made a lot of progress in market size, market varieties, mechanism innovation, etc.. The rapid development of bond market provides more convenient financing channels, and also contribut to financial products diversification. At the end of 2013, total debt amounted to 29.6 trillion RMB.A major feature of China’s bond market is that the bond market is divided into inter-bank bond market and the exchange bond market. As both markets have totally different market participants, trading instruments and trading mechanisms, the inter-bank bond market and the exchange bond market have significant differences in many aspects. Currently domestic scholars focused only on research of segmentation and differentiation problems between two markets, and few scholars have studied whether macroeconomic factors have different impacts on inter-bank bond market and exchange bond market.In this paper, we use a combination of qualitative and quantitative methods to analyze the difference of inter-bank bond market and the exchange bond market. The first part of the paper is an introduction of research background and significance. The second part describes the history of the development of China’s bond market and the market framework, followed by the qualitative analysis of the differences between inter-bank bond market and exchange bond market. The third part introduces the variables included in empirical analysis. In the fourth part we use multiple linear regression model to study differences between inter-bank bond market and the exchange bond market. In the fifth part, we mainly use VAR to measure the sensitivity of inter-bank bond market and exchange bond market to macroeconomic factor movement. Finally, we summarize the empirical results of the full text, and put forward reasonable suggestions for the development of China’s bond market.