Research On The Difference In Bond Interest Rates Between State-owned Enterprises And Private Enterprises

At the Fifth National Financial Working Conference,President Xi Jinping emphasized that more emphasis is placed on direct financing.Bonds,as financial instruments for companies to directly borrow funds from society,have lower financing costs and are not diluted for ordinary enterprises compared to other financing channels.The advantages of equity and broad investor base are important tools for direct financing.From an investment perspective,bonds have the advantages of low risk,stable returns,small price fluctuations,and good liquidity.They are important investment channels for investors.In 2019,China's existing stock of bonds totaled 49,424,and the balance of bonds stood at 97,106,609 million yuan,which has become an indispensable financing tool for China.Since 2014-2019,98,272 bonds have been issued by state-owned enterprises,and 17,109 bonds have been issued by private enterprises.There is a large gap between the number of bonds issued by state-owned enterprises and private enterprises,and there is still considerable room for development of bond financing.Many scholars have researched the debt issuance of state-owned enterprises and private enterprises.The main research results include:research on financing costs,default risks,credit spreads,bond ratings,and innovative varieties of enterprises of different natures.Analysis of the characteristics of interest rate differences is rare.Based on the existing theories and the research results of scholars,this article attempts to summarize the current bond issuance and regulatory system in China,the main bond varieties,the development status of the rating industry,the rating payment system,and the rating regulatory system.This paper summarizes and compares the characteristics of the differences in the interest rates of bond issuance between state-owned enterprises and private enterprises in various regions,bond issuance markets,different ratings,different bond varieties,various industries,and the perspective of the macro situation.Through empirical analysis,design a total sample and sub-samples of different corporate nature,different bond types,and different bond issuance markets.Through regression analysis,it is found that the main factors affecting the interest rates of state-owned enterprises and private enterprises are the risk-free interest rate and the nature of the enterprise.It also compares the sub-samples and analyzes the effect of different factors,which lays the foundation for the subsequent interpretation from the perspective of risk premium and credit rating.In addition,this paper also conducts a qualitative analysis,analyzes the factors that affect the risk premium from the difference between the default rates of state-owned and private enterprises,and uses the rating methods and standards to study the industry,assets,and profitability of state-owned and private enterprises from the perspective of corporate qualification In terms of capacity,financing environment,and institution building,and explained the differences in interest rates.From the aspects of the rating industry's payment system,rating early warning mechanism,and rating supervision system,etc.,analyzing the possible impacts of enterprises of different natures,the conclusion is that credit ratings are easier to balance with therisks and benefits of “rating investment”.Give SOEs a higher credit rating.Under the circumstances that the rating supervision system needs to be improved and the investor protection system is inadequate,investors are more likely to choose state-owned enterprises that generally have better qualifications and are less prone to debt evasion and debt cancellation.Based on the above research,this article summarizes that the interest rate difference between state-owned and private enterprises is related to the company's own operating conditions,asset status and credit rating to a certain extent,and has certain rationality.In fact,implicit guarantees,inadequate rating supervision systems and rating early warning systems will affect the interest rates of state-owned enterprises and private enterprises.The difference in interest rates affected by these non-market factors is unreasonable.On this basis,suggestions for cancelling implicit guarantees,respecting market laws,promoting the construction of private enterprise systems,improving investment payment systems and rating supervision systems,improving rating standards,and improving rating technology and rating capabilities were put forward for reference by relevant departments.