The Analysis On The Influence Factors Of Issuing Rate Of The Bond Issued By The Urban Construction Investment Company In China

This paper analyzed the influencing factors of the interest rate of the bonds issued by urban construction investment company,and found out the characteristics and differences of the factors influencing the pricing of the bonds issued by the urban construction investment company,so as to provided some references for establishing a sound pricing mechanism of the bonds issued by the urban construction investment company and related regulatory policies.First of all,on the basis of studying the municipal bonds and the bonds issued by urban construction investment company on the domestic and foreign literature,I compared the difference between the municipal bonds of United States and the bonds issued by urban construction investment company of China.then,the article introduced the development process,special features,the current situation and the credit promotion measures of the bonds issued by the urban construction investment company.And then,the article analyzed respectively the macro and micro factors which influenced the issuing interest rate of the bonds issued by the urban construction investment company.On the basis of reading a lot of literature,I have chosen the multivariate linear regression model for empirical analysis,which includes four hypothetical variables and six control variables.In the part of empirical analysis,analyzed the influence of the four hypothetical variables respectively to the dependent variable of the bonds issued by the urban construction investment company,and then respectively added six control variables to set up another model to inflect the stability of the influence of the hypothetical variables.The four hypothetical variables included two macro-factors and two micro-factors,which included M2,CPI,credit grade and special items.The six control variables included revenue/GDP,the city grading,income,non-business income and the period of the bond and the control years.There were nine models at all,which included different hypothetical variables and control variables.Through the nine models,the article provided the stability of the impact degree of every hypothetical variables on the dependent variables.Every model verified its hypothesis which the article proposes.Through the above analysis,we got the following results: from the perspective of hypothetical variables,there is a negative correlation between M2,CPI,credit ratingand the interest spread,and a positive correlation between special item and interest spread.From the perspective of control variables,the fiscal revenue /GDP and the city grading has a reverse relationship with the interest rate.However,the income,the non-business income and the period of the bond have little relationship with interest rate.Finally,in view of the existing problems of the bonds issued by the urban construction investment company,the article put forward the policy suggestions.