The Research On The Strategy Of Development Of Corporate Bond Market

Since the launch of corporate bond in China in the 1980's, and despite of its prosperity of 1992, the developing speed of the corporate bond market, in the general view, is much slower than the stock market and government bond market. There is a big gap existing in terms of market size, market instruments and secondary market turnover, etc. Hence, the entire capital market seems to be somewhat "crippled". Compared with the mature markets overseas, China's corporate bond market is lagged behind, which not only negatively affects the development of the whole capital market but also leads to corporations' unreasonable financing structure.This paper takes the Chinese corporate bond market as an object, regards its essence as a masterstroke and applies the new institutional economics and historical method. It is intended to seek out the restraints on the corporation bond market, and its further explanations in particular. Then the proper market strategy is explored in view of the success of the advanced countries. The paper consists of five parts.Part one defines the intension and extension of corporate bond. The differences and linkage between corporate bond and enterprise bond are discussed in order to foreground the key of this paper. The significance of the study as well as the research background is stated and analyzed as well.Part two sets up the theoretical framework of the new institutional economics on the base of game theory, thus picking up the main institutional facts that affect the development of corporate bond market.Part three describes the history and the status quo of the development of corporate bond market in China. It reviews the past of corporate bond market and analyzes its features through comparing with the stock market and government bond market. Comprehensive analysis is carried out on the reasons of its slow development.Part four provides the successful experiences of the advanced countries, including the features and especially the rule between economic growth and corporate bond market in different financial system.Part five is the study on the development strategy on the corporation bond market in China. Based on the above-mentioned reasons and China's national features, effective strategy is proposed from the aspect of internal institution and external environment of corporate bond market.