Market Efficiency of Collective Bonds for Small- and Medium-Sized Enterprises in China

Collective bonds are innovative financial instruments issued in some of China's high-tech development zones to solve the financing dilemma of small- and medium-sized enterprises (SMEs). This article creates a credit model with which to analyze the operating mechanism and inherent laws of collective bonds and to answer the following questions from the point of view of quantification: Can SME collective bonds improve financing efficiency? How do they improve financing efficiency? What are the extent and requirements of improved financing efficiency? The article provides a theoretical basis for the development of SME collective bonds in China