Research On The Influencing Factors Of Credit Risk Of Private Equity Bonds In China

In May 2015,the Securities Regulatory Commission issued the Close Corporation bond management regulations,which divided our corporate bonds into "big public offering corporate bonds","small public offering corporate bonds" and "private equity bonds",and stopped the record of private debt of small and medium-sized enterprises.In the same month,the first private company bond in China was listed on the Shanghai stock exchange,indicating that the private debt in China has officially entered the promotion stage.Unlike the other two types of public securities,private equity bonds,to a certain extent,liberalized the requirements of the size,profitability,and solvency of the issuer,and opened up a new channel for direct financing for small and medium-sized enterprises.In 2016,the issuance of private equity bonds reached its peak.Due to frequent credit default incidents in the bond market,to a certain extent,it has hit the enthusiasm of private equity issuers and investors.In 2017,the scale of issuance of private equity bonds has declined.But compared with public corporate bonds,private equity bonds still play a very important role.Private debt in China has mainly experienced non-public directional financing tools,private debt and private company bonds.Small and medium-sized private debt as a pilot variety of early private debt market in China(from 2012 to 2015),after 1 years of issuance,ushered in a centralized payment period.With the arrival of the centralization period of private debt in small and medium-sized enterprises,there are a large number of credit events in the bond market that the private debt issuers of small and medium-sized enterprises are unable to pay their interest.China's private equity bond is a relatively "young" bond variety,most of which is 3 to 5 years.That is to say,the period of cashing of private corporate bonds in China will appear in 2018.Therefore,it is of certain significance to prevent the similar situation of private equity bonds,and to study the factors affecting the credit risk.This paper quantifies the credit risk of private corporate bonds on the basis of credit spreads,and comprehensively and systematically studies the credit risk of private equity bonds in China through the combination of theoretical and empirical analysis.First of all,this paper makes a quantitative analysis of the influence factors of credit spreads from three aspects of the macro-economic level,the company level and the bond characteristic level.Secondly,combine the three levels of factors to make a specific discussion.The results show that compared with the macro factors,private equity issuers' self qualification and bond characteristics are more explanatory.The further empirical results show that other factors are significantly related to the credit spreads of private equity bonds,in addition to the liquidity ratio of the corporate finance and bond factors.Finally,based on this research result,the corresponding countermeasures and suggestions are put forward from three perspectives:macro-economic level,the company level and the bond characteristic level.