An Empirical Study On The Determinants Of The Credit Spread Of Chinese Corporate Bonds

As one of the main financing ways for Chinese corporates,which as important as stock,corporate bonds has been a key financing category developed by the CSRC and the Exchanges.In January 2015,the CSRC formally promulgated the "Measures for the Management of Issuing and Trading of Corporate Bond." It expanded the range of issuance of corporate bonds from listed companies to all corporate,and added a non-public issuance method,which is a fast way for development of the corporate bond market.Under the new environment of corporate bond market,with the study on the factors that affect the credit spreads of corporate bonds,the causes of credit risk of corporate bonds can be revealed.And it will provide some theories of pricing corporate bonds in the primary market and investing in the secondary market.This article studies the factors that affect the credit spread of corporate bonds in China from the perspective of theoretical analysis and empirical test.Firstly,theories study,on the existing domestic and foreign research results,from the three aspects of the theoretical model of credit spread pricing,the macroscopic and microscopic factors of credit spreads.Based on this,choosing the factors that can affect credit spread of corporate bonds.Secondly,from the theoretical study,the theories of the main factors affecting the corporate bond credit spreads are analyzed,which is a theoretical foundation for the empirical test of the following text.Thirdly,based on literature research and theoretical analysis,the agency indicators of the factors that affect the credit spreads of corporate bonds are selected from macro environment,company qualification and bond properties.Finally,empirical tests are conducted from the above three perspectives.At the level of company qualifications and bond properties,sub-samples are selected based on company is listed or not and issuance methods of corporate bonds,and then the subsamples are studied.The study finds that macro-environmental factors can have a significant impact on credit spreads;corporate qualifications have a clear impact on the credit spreads of corporate bonds issued by listed companies and weak influence on credit spreads of non-listed companies' corporate bonds;factors of bond properties have a significant impact on credit spreads in small public offerings subsample,and only credit rating can have a significant impact in large public offerings and private equity subsample.