The Influence Of Government Implicit Guarantee On The Interest Spreads Of State-owned Enterprise Bond Issuance

State-owned enterprise bond plays an important role in Chinese bond market.As of December 31,2020,the balance of state-owned enterprise bond in China has reached 32.60 trillion,accounting for 84.29% of the balance of the whole credit bond stock market and 28.52% of the balance of the whole bond stock market.On November 10,2020,the default of "20 Yong coal scp003" bond of Yongcheng Coal Power Holding Group once again triggered large fluctuations in the market and extensive discussion among investors.It also brought back the problem of bond risk of state-owned enterprises and the implicit guarantee of the government to stateowned enterprises to people’s attention again.Through the research on the above problems,it enriches the research perspective of relevant content.This paper selects the theme of " The influence of government implicit guarantee on the interest spreads of state-owned enterprise bond issuance",follows the research idea of "theoretical framework-mechanism analysis-practical analysis-empirical analysis-policy suggestions",pays attention to the combination of theory and practice,and provides certain theoretical basis for policy makers..Firstly,this paper defines the relevant concepts that need to be used,and elaborates the relevant theories such as government implicit guarantee and bond spread.Secondly,this paper explores the relevant impact mechanism from three levels: the government implicit guarantee and the interest margin of state-owned enterprise bond issuance,the tripartite relationship after adding credit rating and the tripartite relationship after adding bond default.Thirdly,this paper returns to the reality and analyzes the development of government implicit guarantee,the development of state-owned enterprise bond market,the credit rating market and the default of bond market.Then,this paper selects the credit bonds of state-owned enterprises issued in Shanghai and Shenzhen Stock Exchange and inter-bank market from 2016 to 2020 as samples for empirical analysis.Finally,from the theoretical and current situation,combined with the results of empirical research,the corresponding policy recommendations.The research results: First,the existence of government implicit guarantee will significantly reduce the interest margin of state-owned enterprise bonds,and the financial resources,liabilities and financial independence of local governments will have a corresponding impact.Second,credit rating has an intermediary effect in the process of government implicit guarantee affecting the bond issuance spread of stateowned enterprises,and the intermediary effect is more obvious.Government implicit guarantee indirectly affects the bond issuance spread by affecting the bond credit rating of state-owned enterprises.Third,bond default plays a regulatory role in the process of government implicit guarantee affecting the bond issuance spread of stateowned enterprises.When default occurs in a certain area,the effectiveness of implicit guarantee endorsement of local government can not be recognized by investors,and the risk compensation needed by investors will be increased accordingly.According to the above conclusions,we should: breaking the rigid cashing of the bond market,promoting the development of bond marketization,ensuring the objective independence of the credit rating process,and improving the investor protection and bond default exit system.