Research On The Liquidity Measurement And Influencing Factors Of China’s Interbank Credit Band Market

Since the opening of China’s interbank bond market in 1997,the scale of interbank bond market has been expanding and the regulations have been gradually improved with decades of continuous development and innovation.China’s bond market issued 45.3 trillion bonds during 2019,while 38 trillion bonds from interbank market.At the end of 2019,China’s bond market owned 99.1 trillion bonds,while 86.4 trillion bonds from interbank market.To the entire bond market,it will be significance of in-depth study of China’s interbank bond market situation and problems.A highly liquid securities market can improve the efficiency of market resource allocation,stabilize the healthy operation of financial markets,and promote stable economic growth.Improving the liquidity of China’s interbank credit band contributes to form a reasonable credit bond price curve,improve the financing efficiency of enterprises and reduce direct financing costs for enterprises.At present,the research on liquidity is focused on the stock market,and the market’s attention to the liquidity problem in the bond market is relatively weak.The research on bond liquidity is mainly focused on treasury bonds and policy financial bonds,while few studies focus on credit bond market.Therefore,it is necessary to pay more attention to the liquidity problem of credit bonds.This paper focuses on how to improve the liquidity of credit bonds in the interbank market.First of all,it expounds a brief analysis on the liquidity of China’s interbank market.It focuses on the development course and operation characteristics,liquidity problems and causes of China’s interbank bond market.Meanwhlie,the index to measure the liquidity of credit bonds in China’s interbank market will be selected and we measure the liquidity of credit bonds in China’s interbank market.Next,this paper analyzes the mechanism of various influencing factors of credit bonds in interbank market and makes empirical analysis on the factors affecting the liquidity of credit bonds in interbank market.At last,according to empirical analysis,this paper puts forward some countermeasures from macro and micro angle to improve the liquidity of interbank credit bond market.The main work and conclusions are as follows:1.A brief analysis on the liquidity of China’s interbank bond market.It focuses on the development course and operation characteristics,liquidity problems and causes of China’s interbank bond market.It also shows that the liquidity of bond market is closely related to the healthy development of bond market.2.Multidimensional measurement of the liquidity of credit bonds in China’s interbank market.Considering the characteristics of China’s Interbank market,we analysis on the measurement index of credit bond liquidity and select volume of the second bond market,turnover rate and amihud non-liquidity indicators to measure the liquidity of credit bonds in China’s interbank market.Also,the paper compares the differences of liquidity of treasury bonds,policy financial bonds and credit bonds.On the whole,the market liquidity of treasury bonds and and policy financial bonds in China’s interbank market is better,while the market liquidity of credit bond is weaker.There is also a large difference in liquidity between various types of credit bond.3.An empirical analysis the influencing factors of credit bond liquidity in interbank market.A theoretical analysis of the factors affecting the liquidity of credit bonds in China’s interbank market from macro and micro perspectives.On this basis,we select the corresponding dependent variables and independent variables from the external factors and the bond’s own factors.Then,we do an empirical analysis on the Influencing factors of credit bond liquidity in interbank market of China4.Suggestions on improving the liquidity of credit bonds in China’s interbank market from macro and micro angle.