Study On The Acceleration Of Development Of Chinese Paper Market

Paper Market is a basic money market, main including commercial bill of exchange market, promissory note market and other short-term bond market. Paper Market has made rapid progress since 18 centuries. Paper market make direct contract with real economy, have less affection made by "economic purple", with the character of steady development. Paper market has the function of payment, circuit, financing, credit, investment, and as tools of liquid management.The development of paper market, the construction of commercial credit system and the construction of relevant regulation can promote each other. The parts of paper market can partially replace each other. The paper market and other money markets can partially replace each other. As an independent market, paper market can make rapid progress firstly under the direction of national policy.Our country made paper discount experiment when the reform and open began. The paper market has been put on the right track along with the legislation of negotiable instrument especially the issuing of Bills of Exchange Act of PRC. The volume of acceptance and discount of negotiable instrument exceed one hundred billion USD dollars in year 2001. Http://www.chinacp.com.cn debut on June 30,2003. Contracting with paper market in the developed countries, there are still plenty of problems such as divided markets, singleness of instruments, less paper operating institutions and immaturity of law in China.The development of paper market must focus on market system construction. To develop Bank's Acceptance market and Trade Acceptance market is the short term purpose of paper market, to develop promissory note market is the medium term purpose, to realize paperless issuing and trading of commercial paper is the long term objective.The integrated outline of paper market should be issued in advance for the acceleration of development of Chinese paper market. Reinforcing and perfecting current information service of www.chinacp.com.cn is the first step of national paper market construction. Then, the China Foreign Exchange System will establish a system that embodies registration and inquiry of paper. Finally, an all-round national paper market service system that embodies quotation, trading, registration, and inquiry of paper discount, rediscount, and inter-institutional rediscount will establish,it will realize the objective of paperless issuing and trading, and will cover the interbank market, bank-enterprise market, and inter-enterprise market. It is essential for the fast development of paper market that revision of relevant law and innovations in new kind of paper, paper business and paper operating institutions. The central bank should construct paper market intermediaries, reinforce discipline of settlement of commercial bank, and increase the fee rate of bank acceptance.