A Research On The Development Of China's Corporate Bond Market

Corporate bond is a direct financing tool with an indebtedness characteristic, as it has a strong bondage on the issuing corporation, with the interest being paid before the income tax. The issuance of corporate bond will not reduce the owner's control on the corporation, and it has the function of tax counteracting, financial leverage and strengthening of the owner's control of the business. The corporate bond market is an integral part of the capital market, the developing of the corporate market will thus play an important role in promoting and improving the development of the capital market, in optimizing the capital structure of the enterprise and further optimizing its governance structure, and in speeding up the reform of state-owned enterprises' owners' equity mechanism.The Committee of China's National Development and Reform has done a great deal of concrete work over the past years in establishing the issuing standard of corporate bond and the infrastructure of the market, which makes a good beginning for the development of the corporate bond market. With the transferring of financial method from administrative interference to market commercial means, and also with the deepening of our market economy development, more and more enterprises have realized the advantages of corporate bond financing; the demand for corporate bond issuance has thus becoming increasingly expanded. Meanwhile, the development of rural credit cooperatives, financial corporations, fund corporations, banks and other non-bank financial enterprises make the market volume becoming much larger,...