The Impact Of The Equity Of Listed Companies Held By The Actual Controller Of The Local Government Financing Platform On The Credit Spread Of Urban Investment Bond

Since 2020,the COVID-19 and trade frictions have had a serious impact on our country’s macro economy.On the one hand,the government stimulates the economy through infrastructure construction;on the other hand,my country’s fiscal revenue and expenditure contradictions are prominent.The above factors make the credit risk of urban investment bonds continue to accumulate,and The expectation of bond principal and interest payment has been gradually broken.In 2019,the incident that the actual controller of the local government financing platform in Guizhou Province used its Moutai stocks to resolve debt risks has attracted widespread attention from the society,and the value of listed company stocks held by the actual controller of the local government financing platform has been increasingly Market attention.This paper analyzes the impact of the equity value of listed companies held by the actual controller of government financing platform on the credit spread of urban investment bonds through empirical research,in order to provide a reference for investors to study credit risk.The research of this paper finds that,first,whether the actual controller of the local government financing.platform holds the stocks of the listed company will affect the credit spread of the bonds issued by the local government financing platform,the credit risk of urban investment bonds and the listed company held by the actual controller of the local government financing platform.The market value of the company’s stock has a significant negative correlation,which means that the credit spread for the issuance of bonds significantly decreases(increases)with the increase(decrease)of the market value of the listed company held by the actual controller;Second,for first-tier cities,second-tier cities and third-tier cities,there are differences in the mitigation effect of the equity of listed companies held by the actual controllers of local government financing platforms on the credit risk of local government financing platform bonds.For secondtier cities,third-tier cities and below,the impact is more significant;Third,the actual controller of the local government financing platform can play a role in mitigating the credit risk of bonds by using the equity of the listed company it holds in various ways.Specific ways include but are not limited to:dividend distribution,reduction of holdings,broadening financing channels and fostering industrial development.The research conclusion of this paper shows that there is a significant negative correlation between the market value of listed companies held by the actual controllers of local government financing platforms in my country and the credit spread of the bonds issued by them,thus revealing the linkage mechanism of equity and debt in local government assets and liabilities,which provides decision-making ideas for local governments to use the equity of listed companies in their hands to consolidate spot and long-term solvency.