Based on the Lasso algorithm and a bidirectional fixed multiple linear regression model, this study comprehensively investigates the impact of macro and micro factors on the credit spread of ESG bonds in China. Research has shown that the credit spread of ESG bonds is negatively correlated with macro factors such as regional per capita GDP, local fiscal revenue, money supply, stock market returns, as well as micro factors such as total issuance amount, entity rating, debt rating, guaranteed delivery, state-owned equity certification, and green certification. Meanwhile, the credit spread is positively correlated with factors such as RMB exchange rate, fuel oil price, and urban investment bond certification. Further heterogeneity analysis indicates that ESG bonds are more significantly impacted by external factors after the epidemic, and the safety of state-owned bonds is further highlighted. The default rate of ESG urban investment bonds in the southwest region is relatively high, and the key to reducing their credit spread is to obtain green certification for establishing a positive market image. The above research conclusions provide important references for optimizing the bond pricing mechanism and reasonably evaluating the risks of ESG concept financing projects.
This paper investigates the impact of Australian consumer price index on Australian dollar - Chinese renminbi exchange rate. As two major economies in Asia Pacific, China and Australia are conducting ever-increasing volume of economic transactions. Massive Chinese investment, particularly in properties, has caused steady increase in Australian consumer price index and the exchange rate of Australian dollar - Chinese renminbi. Recent slowdown of Chinese economic growth and Chinese investment in Australia caused both Australian consumer price index and the exchange rate of Australian dollar - Chinese renminbi to fall significantly. This paper utilizes data from May 2005 to January 2016 and empirically tests the relation between Australian consumer price index and the exchange rate of Australian dollar - Chinese renminbi. In compliance with classical theories of exchange rates, empirical results find that a negative relation exists between Australian consumer price index and the exchange rate of Australian dollar - Chinese renminbi.
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