Research On The Financing Optimization Of Panda Bonds Based On T Foreign Enterprises

In the early years,due to the high price of panda bond issuance and the imperfect system,foreign enterprises had a low intent to issue bonds.With the promulgation of policies and system reforms,the panda bond market has entered a fast track of development,and the scale of transactions is gradually expanding as well.The study showed that there are a series of problems in the panda bond market : the proportion and scale of foreign issuers are far less than that of Chinese-funded company,the rate of increase is slow,and the bond issuance interest rate is higher than that of Chinese ones.Because panda bonds enable foreign enterprises to widely use the renminbi in international business,it is one of the important tools to show the internationalization of the renminbi.On the other hand,for companies,price is the most important factor in financing.Therefore,discussing the panda bond financing strategy of foreign enterprises and increasing the scale of foreign enterprises’ issuance will play an important role in promoting the development of the panda bond market and also influencing the internationalization of the RMB,.Based on the research of T-foreign group,this article mainly solves the problems of foreign companies in using panda bonds,and optimizes pricing strategies to enable foreign companies to increase the scale of panda bond.The specific issues include the following: 1)What is the current situation of the panda bond market and what problems T Group has encountered.2)What are the strategic development and financing policies of T Group,and whether the panda bond financing meets corporate requirements? 3)Determine what are the significant factors that affect the pricing of panda bonds,and what optimization strategies are proposed for T Group.4)What is the market improvement opinion,so as to provide T Group with a more optimized bond issuance environment.According to this,the research method of this article is carried out through case analysis and empirical research.The thesis first sorts out the development process of my country’s panda bonds.Statistics show that foreign-funded issuers are not as good as Chinese-funded enterprises in terms of bond issuance scale,bond pricing,and the speed of new issuers.For example,since T Group first issued bonds in 2018,its panda bond issuance prices have not improved significantly due to its increased financing capabilities,and lack of financing advantages.Secondly,through the strategic SWOT analysis of T Group,the explanation of the advantages of financing strategy,and the horizontal comparison with other foreign issuers,this article found that: T Group’s credit conditions are competitive in financing and have debt issuance needs,but suffer from restrictions due to excessive pricing.To increase its bond issuance.Then,according to the bond pricing theory,this paper selects 10 possible factors,intercepts all samples from the first bond issuance of non-sovereign institutions to June 2020,and conducts empirical verification.The empirical results show that the issuer’s ownership,the rating of the issuer,the method of bond interest,the long-term spread between China and the United States,and the domestic interbank market lending rate have a significant impact on the issue price of panda bonds.Among them,the three factors of issuer rating,long-term China-US interest rate spread,and issuer ownership are negatively correlated with the interest rate of panda bonds,indicating that as the index level increases,the bond issuance interest rate can be significantly reduced;interest-bearing method,domestic inter-bank market lending rate The positive correlation with interest rates indicates that rising indicators will lead to higher bond issuance rates.Finally,according to the effect of influencing factors on the interest rate of panda bond issuance,this article proposes an optimization strategy from the subjective point of view of T Group and the objective level of the market,aiming to reduce the price of T Group’s bond issuance and increase the scale of bond issuance.It will also provide foreign-funded enterprises with a more transparent and effective information rating system,a fairer financing environment,and a more competitive financing market for future bond issuance.In terms of panda bond research,the main innovations of this article are: First,the research object innovation: the change from macro market law to micro enterprise demand.The current research on panda bonds is mainly focused on the macro perspective,that is,the overall development and scale of the market.It does not distinguish the impact of different types of bond issuing companies on market development,nor does it understand the issue of corporate bond issuance.This article starts with the case company,which can solve the problem more effectively.Second,the research method innovation: This article combines case analysis and empirical research,deeply analyzes the case company,and finds out the dilemma that hinders development is the high bond price.Combined with the empirical results,an effective strategy for optimizing bond prices is proposed.Compared with academic research,the case is detailed and specific and vivid,and has more practical reference significance.Third,the case is typical and has research value: The case objects selected in this article and the horizontal comparison objects have financing needs.They have participated in the panda bond market to issue bonds,have practical experience,and compare future optimization results with traces.Secondly,the case company itself has good risk prevention and control methods and financing methods,which have practical reference value for other companies to improve their ability to issue bonds.