The Analysis On The Liquidity Of China Inter-bank Bond Market

As for economic growth, fostering the bond market is as important as developing the stock market. One nation's bond market includes the stock exchange market and the inter-bank bond market, which firmly interpromote each other and should be developed harmoniously. Therefore, as for China inter-bank bond market starting lately, it is especially important that how the central bank improves the transaction efficiency of the market and develops the whole bond market harmoniously. The author considers the liquidity of the inter-bank bond market as the key of stock market. Starting with the establishment of China inter-bank bond market, the paper discusses the developing measures and the evolving process of the market's function. On the basis of giving a scientific definition to the liquidity of the inter-bank bond market, the paper uses the index about the liquidity to make empirical research of China inter-bank bond market. Thus it comes to a conclusion that the liquidity of China inter-bank bond market is weak .Emphasizing the bond kind, transaction, financial market, and institutions, it makes deep analysis in these fields and points out: the inter-bank bond market should be developed rapidly. Eventually, it provides some instructive advice on how to improve the liquidity of China inter-bank bond market.