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China's Corporate Bond Market Development

Posted on:2003-12-31Degree:DoctorType:Dissertation
Country:ChinaCandidate:N H SuFull Text:PDF
GTID:1116360092970987Subject:Public Finance
Abstract/Summary:PDF Full Text Request
As the core of the financial market, the development of the capital market to a great extent decides the development of the financial market. From the national economic point of view, the capital market is the link between savings and investment, and its development affects the efficiency of changing from saving to investment. The capital market consists of the long-term debt marked the stock markets and the long-term bond market (including the government securities market and the corporate bond market).A perfect and developed capital market should be made of different subsidiary markets that represent different combination of risks and benefits. In a perfect capital market, all investors who have different partiality for risks can enter. If only the investors who can assume high risks entered capital market, then the capital market would turn into a speculate market. If only the investors who can not assume risks entered the capital market, then the capital market would lost its vitality. Only a market that can accommodate the investors with different preference for risks would be a genuine capital market. This dissertation makes a systematic study of the corporate bond market in china, and analyzes each factor that makes an impact on it, and then provides resolution for its development.Besides introduction, this dissertation contains four chapters.Chapter one: The History of the Corporate Bond Market in China. This chapter is designed as a general introduction to the development of the corporate bond market in china. First, it introduces the history of the corporate bond issue market in china. Second, it introduces the history of the corporate bond circulation market, and then analyzes the development of over-the-counter market and exchange market. Finally, it describes the present state of this market.Chapter two: The Comparison and Choice of the Methods of Corporate Financing. This chapter briefly analyzes the main factors that affect corporate financing. First, itintroduces several capital instruction theories in the world, including MM theory. New-sequence financing theory. Agent-cost theory and Signal-model theory. Second, it makes a comparison of the banking loan and the corporate bond, and then analyzes how these two kinds of financing methods make an impact on the enterprises under the situation of information asymmetry. Finally, it uses the capital structure and the debt source structure theories to explain how to choose corporate financing. After analyzing the financing preference of controlling stockholders and managers, it comes to the conclusion that stock financing is the best choice, next is banking debt, and then corporate bond. This kind of financing sequence results from our poor corporate governance system. Through the analysis of the outer governance system - market governance system and the inner governance system - corporate governance structure, it points out that a perfect corporate governance system can make our enterprises choose the financing sequence according to market factors, and then the corporate bond market will develop quickly.Chapter three: The Government Action in Corporate Bond Market. In this chapter, the government acts as two roles: the fund competitor and the social management, each role has its own action. As the fund competitor, the government action has much to do with the government securities market, the relationship between the government and the corporate bond market is the same as the government securities market and the corporate bond market. In this case, the government action can be divided into two stages: one is to make sure the issue of the government securities by restricting the development of the corporate bond market and another by constructing and improvhig the government securities market. As the social management, the government action must consider that who should bear the possible bankrupt costs after the issue of corporate bonds, and thus result in the choice of the government action. Besides, the government also should make a cho...
Keywords/Search Tags:Coporate Bond, Financial Selection, Credit Rating
PDF Full Text Request
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