The Impact Of Bond Connect On Bond Liquidity

This thesis uses DID model to study the impact of bond connect on bond liquidity.Besides,it analyzes the market performance to study the overseas investment preference.After analysis of the overall sample,the sample was grouped according to the northward fund amount,company risk,and debt-paying ability to explore mechanism of liquidity improvement.It shows that the bond liquidity has increased significantly since the launch of the bond connect.Meanwhile,due to the diversification of bonds,the impact of bond connect is different,which means that low-risk bonds maintain a high degree of liquidity.This thesis analyzes bond connect,which has strong timeliness.The policy has been implemented for more than one year,and there is not too much related research.It proves that bonds with different characteristics face different influence mechanism in this thesis.About one year after the implementation of the bond connect,based on market data,it is necessary to explore the difference between the actual effect and the expected effect of this policy,which is a good reference for the southward bond connect.