Study On The Impact Of The Expansion Of Inter-bank Certificates Of Deposit To The Costs Of Corporate Debt Of Financing Of China

Since the release at the end of 2013,the development of the domestic inter-bank CDs market has been rapid,and inter-bank CDs has become the most important currency market tool in the inter-bank market.However,at present,there are still few systematic studies on inter-bank CDs and its impact on China's financial markets,and there is a lack of quantitative research.At the same time,the majority of enterprises in China now face the problems of financing difficulties and expensive financing.In this regard,this paper try to make it clear that what effect will inter-bank CDs make on the cost of corporate debt financing in China from both macro and micro perspectives.At the macro level,daily data of inter-bank CDs and various types of bonds in the bond market of China between August 2015 and July 2017 are used to study the process of expansion of inter-bank CDs and the mechanism of influence of it to bond issuance amount and issuance rate in the bond market.At the micro level,quarterly unbalanced panel data of 865 non-ST and non-financial listed SMEs and 688 GEM companies from October 2014 to September 2017 are used.Results of empirical study have shown that inter-bank CDs will indeed increase the debt financing costs of listed companies to a certain extent.Moreover,after the verification of the industry,we find that this effect is not affected by the industry in which the company is located.The results of the study show that the effects of inter-bank CDs on the cost of debt financing of manufacturing and non-manufacturing companies are in the same direction and the effects are almost the same.However,after verifying the sub-samples based on the scale of the company(using operating income as an indicator),it is found that this variable is an extremely important factor for this effect.The specific manifestation is:for relatively large-scale enterprises and relatively small-scale enterprises,the impacts of inter-bank CDs on their financing costs are in the same direction but the effect degrees are significantly different.The impact on the financing costs of relatively large enterprises is less than the impact on relatively small or medium ones.In addition,the above conclusions are true for both SMEs and GEM companies in which the sample is selected from listed companies.This shows that the empirical results of this paper are not influenced by the sample selection and have certain robustness.The conclusions obtained are applicable for general listing companies which have relatively small or medium size.