The Flaw Of Enterprise_bond Market In China And The Corresponding Measure

Financing by bond is one of the most important direct financing methods. In the mature foreign capital markets, enterprises finance much often by bonds than by stocks which is another direct financing tool. Though enterprise's bonds' market turned up earlier than that of stocks in the capital market in China, they have fallen behind the latter through years of development. Still the gap between them is expanding.In the micro aspect, strongly develop enterprise_ bonds' market helps dissolve banks' risk, replenishing capital markets and speed up the pace of globalization.. In the microcosmic aspect, the development of enterprise_ bonds' market helps heighten company's value, optimizing administering structure, enhancing the efficiency of capital. Nowadays, it is the right chance to develop the market and the condition is almost prepared. A compare between Chinese enterprise_ bonds' market and that of America shows that our bonds' assortment is much less than American bonds, the quantity of issue is lower and the transaction frequency is small. If we look inside the situation, we can find out the reasons. First, the growth of our enterprise_ bonds' market has been suppressed by the system of organization. For example, guided by the opinion of emphasizing stock markets while play down the role of enterprise_ bonds' market, the total value of bonds issued and the time of issue is rigidly controlled. Second, the operating system is not perfect. All the departments work separately. The administration is not standard. Moreover, the legal system for the enterprise_ bonds' market is somehow vacant. For example, thecredit_grade assessing organization is not of authority. The information is serious not symmetric. The last but not the least, the backward of enterprise's property right's innovation is the root why the bond market is difficult to occupy much share.To develop enterprise_ bonds' market, first of all, we must recognize its important significance. Only if we know clearly every function of it, integrate it into our national development strategy can we plan as a whole of it. Second, step by step shall we change the administrate pattern of enterprise_ bonds' market. Expand the companies who have the right to issue bonds and enrich the sorts of them. To build and optimize the bonds evaluating system, making profit and risk fits each other. It is urgent to establish some kind of warning system against the bonds that couldn't be pay on time and the system which can somehow compensate the loss of the investors. There is one thing very important, that is to speed up the innovation of enterprise property right and model a real market's principal part.