The Analysis Of Effect Factor Of Chinese City Construction Bonds’ Credit Spread

This paper mainly uses the multiple linear regression method to analyze the credit spread when the city construction bonds are issued,and obtains the factors that affect the credit risk of city construction bonds.The sample data used in this paper is the city construction bonds which have been issued from 2014 to 2017.Through empirical analysis of the relationship between the credit spread of city construction bonds and macroeconomics,money supply,market factors,the financial strength and debt level of local governments,policy factors,distribution factors and the qualifications of platform companies,then we got the final conclusion.This paper is introduce policy factors as dummy variables,and classify the sample data with the final investment of the funds raised by the city construction bonds,and perform regression analysis on each category separately.The final conclusion is that macroeconomics,money supply and bond issuance factors have a significant impact on the credit spread of city construction bonds.In addition,the city construction bonds issued before the 43 rd document and raised funds is public welfare and quasi-public welfare.Administrative level,financial strength as well as debt level of the local government are more influencial factors towards on credit spread.However,operation and financial conditions of the Financing Platforms itself are barely irrelevant factors,but was issued after the 43 rd document,and the raised funds are invested in non-public welfare bonds.The credit spread is affected by the factors of the government where the platform is located,and is also related to the operation and financial status of the platform itself,and is more significant.