Chinese National Debt Repurchase Market Analysis

The repurchase market of the government bond is the place where the holders can finance with a low cost , where the short-term fund can be invested securely , where the central bank discloses the market operation and carries out monetary policy . At that time , the repurchase of the national debt has increased the mobility of the national debt . But there are still some questions in the present national debt buy-back market of our country, having accumulated considerable risk as well , This thesis analyses the current problems and then put forward the corresponding solution . Chapter 1 introduces the basic concept , procedure , function and characteristics of the repurchase , It describes the historical evolution of government bond repurchase of our country , and analyses the basic arbitrage tactics and principle in the process of the government bond repurhase . Chapter 2 analyses the characteristics of the repurchase interest rate of the government bond as basic rate , and compares it with the interest rate of other markets . The relationship between economic growth rate (RGDP ) , the consumer price index (CPI ) and the government bond repurchase interest rate is offered . Chapter 3 analyses the outstanding problem existing in the hypothecating type buy-back of the exchange , and the author point out that these problems have close relation with repurchase system . Then the author proposes the tentative reform of the system . Chapter 4 analyses the newly adopted measure of the overall repurchase , and the possible form of arbitrage mode and its risk . The positive influences of the overall repurchase upon the government repurchase are presented too .