Abstract
Through the establishment of the panel vector autoregressive model (PVAR), taking the 31 provincial panel data from the fourth quarter of 2013 to the second quarter of 2018 as research samples, the empirical test on the regional effects of bonds and stocks on social financing is carried out. The results show that the impact of bonds on social financing is greater than the impact of stocks on social financing. Compared with the economically less-developed regions and economically underdeveloped regions, the social financing in economically developed regions is the most sensitive to bonds and stocks. And the bonds and stocks in economically developed regions have a greater and far-reaching impact on social financing.
Highlights
Over the past two decades, China’s financial market has achieved great development, and the types of financial instruments continue to increase
The results show that the impact of bonds on social financing is greater than the impact of stocks on social financing
As can be seen from the figure, the fluctuation amplitude of the impulse response graph of bonds to social financing is larger than that of stocks to social financing, indicating that the impact of bonds on social financing is greater than the impact of stocks on social financing
Summary
Over the past two decades, China’s financial market has achieved great development, and the types of financial instruments continue to increase. Compared with developed countries and even some emerging market countries, there is still a big gap. Increasing the innovation intensity of financial instrument is of great significance for realizing the internationalization of China’s financial market. While expanding bond issuance is of great significance to China’s multi-level financial system construction, increasing the proportion of direct financing and reducing the fragility of the financial system
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