“Three Red Lines” And Issuing Interest Rate Of Real Estate Bond

China’s bond market has experienced 30 years of rapid development.In recent years,with the liberalization of corporate bond policy,the scale of China’s bond market has further expanded.At present,the total stock of the bond market is close to130 trillion yuan,far exceeding the total market value of A-shares.The brutal growth of the bond market is accompanied by a large number of real estate enterprises with high debt,which may lead to systemic risks in China’s financial sector at any time.Since the 19 th National Congress of the Communist Party of China,the central government has adhered to the general tone of "no speculation in real estate",with no systemic financial risk as the bottom line,and ironed the growth curve of the development and real estate industry through intensive regulatory policies.At the beginning of 2021,the new policy of "three red lines" was officially implemented.At present,the impact of the market on the new policy of real estate is still in the exploratory stage.Therefore,this paper studies the impact of "three red lines" on the interest rate of real estate bonds,which has certain practical and guiding significance.Because we want to study the impact of the "three red lines" new policy,this paper selects all credit bonds issued one year before and after the implementation of the new real estate deal as a sample.Firstly,by combing the relevant literature and theoretical research,this paper puts forward reasonable assumptions and constructs a model to verify that the issuance interest rate of real estate bonds will be significantly higher than that of non real estate bonds.Further,this paper studies whether the "three red lines" have a significant impact on the interest rate of real estate bonds through stepwise regression method;Finally,this paper investigates the inter group differences of the impact of the "three red lines" on the interest rate of real estate bonds before and after the new real estate deal.In this paper,the lag one-stage explanatory variables are used to reasonably test that the model does not have endogenous problems.In addition,the robustness test is carried out by adjusting the sample period,and the results are also significant.It is found that:(1)there is a significant positive interest rate spread between real estate bonds and non real estate bonds,that is,the financing cost of issuing bonds by real estate enterprises is higher;(2)On the whole,the asset liability ratio,net liability ratio and cash short debt ratio after excluding advance collection have a significant impact on the issuance interest rate of real estate bonds;(3)After the implementation of the "three red lines" new policy,the impact of asset liability ratio and cash short debt ratio excluding advance collection on the interest rate of real estate bonds increases,and the impact of net debt ratio on the interest rate of real estate bonds decreases.The possible research contribution of this paper is mainly reflected in the innovation of research content and sample data.Firstly,this paper improves the classical bond interest rate pricing model,introduces the "three red lines" mentioned in the new real estate deal as the explanatory variable,and studies the impact of the "three red lines" on the issuing interest rate of real estate bonds,which is a supplement and perfection to the domestic academic research on real estate bonds.Secondly,the sample selection of this paper has characteristics.This paper selects the symmetrical interval of one year before and after the implementation of the "three red lines" new policy as a sample,which is conducive to objectively explore the impact of the "three red lines" on the issuance interest rate of real estate bonds through grouping regression,and the research results are more convincing.This paper believes that the issuance of real estate bonds is greatly affected by policy factors.Real estate enterprises need to constantly optimize their debt structure and financial indicators in order to meet the requirements of current policies on the real estate industry.Secondly,the supervision needs to pay more attention to the off balance sheet liabilities and bill financing of real estate enterprises,and grasp their credit risks more accurately.