China's Open Market Operations Of The Development Research

After the creation by Chinese Central Bank in 1996, open market operations are continual to be tried and renovated, being combined with our country's concrete and actual circumstance and drawn lessons from the abroad successful operation experiences, which make this business gradually head for the maturity. Particularly in recent years, the Central Bank of China expands open market operations through the inter-bank bond market, supply and take back the base money on a large scale, and regulate the money supply and the money market interest rate, which deeply influence the commercial banks' credit scopes.These practices prove that open market operations have now become the most important monetary policy instrument and a principal instrument of the routine operation and played a more and more important role. It means that our national monetary policy regulation has realized the shift from direct control to indirect control. However, because of the extent of the economic market-oriented hi our country being low, the open market operation still is a system restricted roughly by many factors and exists part of localizations, needing the further development with perfect.The purpose of this article is to study these problems, by studying the function principle and operation mechanism of open market operation, analyzing the situation of our country's open market operations. It brings up the key problems and obstacles existing in the course of development, such as organization system, market system, economic and financial condition, technique problem, general localization and so on. Subsequently the article makes use of the related economical principles and the abroad successful experiences, and puts forward the problem-solving ways and policy suggestions.In conclusion, the further development of our country open market operations, not only need the proper macroeconomic environments, but also need advanced and scientific micro operation mechanism. Only development of two aspects can we skillfully apply this tool and realize the monetary policy objective.