The Study Of The Factors Influencing The Pricing Of The Urban Construction Investment Bond In China

Chinese Urban Construction Investment(UCI)bond had always been a hot topic in the bond market.Its birth also had obvious economic shadow with Chinese characteristics,which had a special position and important meaning in infrastructure construction and urban development in China.Based on the current development situation of the Chinese UCI bond,this paper qualitatively analyzed the macro and micro factors that influence the pricing of Chinese UCI bond.The micro factors were divided into two parts:one was the bond terms,the other was the financial data of the issuer.Then,I obtained the issuance data between 2008 and 2019 through Wind financial terminal,and the sample is divided into two stages,the 2008-2014 and the 2015-2019.Taking the interest spread between the coupon rate of UCI bond and government bond yield whose term structure was the same as the explained variables,this paper studied the impact of local economic development level(GDP),Consumer Price Index(CPI),local financial strength(local general public budget revenue),administrative level,money supply(M2),issuance size,bond credit rating,bond maturity,issuance mode,total asset of issuer,asset liability rate of issuer and return on total asset of issuer on spread of the UCI bond by empirical study.Generally,investors can not get the macro-economic data of the year when they invest UCI bond,so they usually use the macro-economic data of the latest year as a reference.Therefore,this paper simulated the actual situation of bond purchase,and made an empirical study based on the data of GDP in the year before the date of issue,the year-on year CPI growth rate in the half year before the date of issue and the year-on-year M2 growth rate in the month before the date of issue.Finally,this paper drew the following conclusions:(1)After 2014,the impact of money supply on UCI bond had become significant.(2)The implementation effect of No.43 document is not up to expectation.(3)After 2014,the impact of public offering on the spread of UCI bond weakened.(4)The reference significance of bond rating increases after 2014.