Research On The Influence Factors Of Panda Bond Issuing Credit Spread In The Interbank Bond Market

Starting from 2014,Chinese panda bond market entered into a stage of fast development.The research over the influence factors on the panda bond issuing credit spread is helpful to achieve better pricing,and it also helps investors to evaluate the investment value and credit risk of panda bond.This paper summarizes the current market characteristics and points out panda bond market is of great value to improving market competitiveness,enhancing the internationalization of RMB and OBOR initiative.Firstly,this paper reviews the development history of the panda bond market and analyses the external environment and driving factors in a way of qualitative analysis.Secondly,combining the credit spread theory and panda bond pricing practices together,it builds a regression model to study the influence factors of Panda bond issuing credit spread based on 70 Panda bonds issued in the interbank bond market.The regression result shows that overseas ratings,interest rate margin between China and US,money market rate and the issuer type is of great significance to the issuing credit spread.At last,based on the study result,this paper suggests that the investor base for the panda bond should be enlarged,liquidity enhanced,building up a Panda bond rating system to achieve a better development of the Panda bond market.