Cross-border issuance of multi-currency bonds is gradually becoming an important financing channel in the process of China's two-way opening-up.However,it also faces prominent challenges in preventing and resolving cross-border financial risks.Exchange rate risk in the primary market and liquidity risk in the secondary market are the most common concerns.Exchange rate risk greatly affects the issuance of cross-border bonds,and the measurement of liquidity risk in cross-border bond transactions needs to be addressed.In this study,we analyze the data related to China's cross-border bond market financing since January 2008.We systematically examine the sources and influencing factors of the main issuance scale and liquidity risk of cross-border bonds.We establish a multiple regression model for the issuance scale of cross-border bonds,considering factors such as the Renminbi spot exchange rate,Renminbi exchange rate expectations,stock prices,global risk aversion,and uncertainty in China's economic policies.Additionally,we propose a method for measuring liquidity risk in bond transactions.The research findings indicate that the issuance scale of bonds is significantly influenced by the spot exchange rate and stock prices in a positive manner,while it is negatively affected by Renminbi exchange rate expectations,global risk aversion,and uncertainty in China's economic policies.The liquidity risk in bond transactions mainly stems from price fluctuations and trading volume.Moreover,the liquidity risk of Chinese offshore dollar bonds of different grades,including investment-grade,all-grade,and high-yield,varies from high to low.However,during periods of severe market turbulence,the liquidity risk of high-yield Chinese offshore dollar bonds is significantly higher than the other two grades of bonds.Finally,we propose recommendations for preventing and resolving financial risks in the cross-border bond market.
Cross-border Bond MarketIssuance ScaleExchange Rate RiskLiquidity Risk
维普
万方数据
