Researchment Of China Petrochemical Corporate Bond Pricing

Compare with developed countries, China’s bond market development is still on theprimary stage, especially the corporate bond market has just started, so far failed toplay its due functions. In the current economic and financial background, the study ofcorporate bond pricing mechanism to promote the development of the corporate bondmarket, the construction of multi-level capital markets, optimize the structure offinancial markets, have important theoretical and practical significance. Petrochemicalenterprises of the production cycle is long, put into a large, slow recovery, thenational economy as a capital-intensive basic industries, the petrochemical industry’scapital constraint is one of the main factors restricting its business development andstrategic upgrades. In May2010, China Petroleum&Chemical Corporation line9billion yuan ten-year corporate bonds,11billion yuan of five-year corporate bonds. InAugust2010, China National Petroleum Corporation successfully issued10billionyuan of ten-year corporate bonds,10billion yuan of five-year corporate bonds, whichis China’s petrochemical enterprises actively expand financing channels, thedevelopment of an important measure of the diversity of investment, but alsoindicates that China’s petrochemical corporate bond market is expected to usher in thespring.By a bond issue of the status quo of China’s petrochemical enterprises on the basis ofthe introduction of foreign corporate bond pricing theory and methods of analysis, theuse of market data pricing issues on China’s petrochemical corporate bonds issued toconduct research and provide a theoretical basis for the issuance of bonds of thepetrochemical enterprises in China, so as to provide reference for China’spetrochemical enterprises financing policy formulation, to solve the pressing issuesfacing the large-scale financing of petrochemical enterprises in China has importanttheoretical and practical significance.Part in the theoretical basis, the term structure of interest rates in the corporate bondpricing theory, the theory of credit spreads, as well as discounted cash flow methodwere described. Focuses on the macro and micro impact factors of the model selectionof the term structure of interest rates and corporate bond credit spreads.In the empirical part, select the data during the study period selected, the selection ofbond category, and model selection are many facets to consider in order to makeresearch results more accurate and representative. The statistical analysis of theempirical part of the data processing, using statistical analysis software SAS world’smost famous enough convincing analysis. This article uses the NSS model in thesimple model to fit the risk-free yield curve, joint fitting linear spread modelestimated income-based risk-free yield curve, after a series of serial correlation test,the model amended forecast for the next issue of credit spreads and credit spreadsdiscount bond theoretical price and compare the actual price obtained relative error inthe acceptable range, indicating that this study has practical application value.