The Research On Transferring National Inter-bank Bond Market Of China Into OTC Bond Market

There are two forms of organization of bond market, security exchange and OTC market while the latter takes up the predominant standing. This is the common characteristic of the foreign developed bond market, the reasons of which lie in both technical and customary factors. Therefore, bond market means OTC bond market in the developed countries. In china, national inter-bank bond market established in June 1997 accounts for the most part of the whole bond market so that in china, when it comes to the bond market, national inter-bank bond market just jumps to one's mind. So what are the differences between OTC bond market and china national inter-bank bond market? Should the latter transfer into the former? How to choose the road to the OTC bond market? All of these are the problems this thesis must resolve.Bond market of china has experienced a complicated three steps, from the primary OTC market to security exchange and then to national inter-bank bond market. From the angle of system transition, every step was coming into being with its own reasons. However, we should also have a clear picture of their limitations with the development of market.Taking analyzing the policy backgrounds and causes of establishment of china national inter-bank bond market systematically as a breakthrough, this paper studies the differences between china national inter-bank bond market and developed OTC bond market, and then gives suggestions on how to make the transferring correct and easier.Points of this thesis are following:First, there are some intrinsic needs for the national inter-bank bond market when it was established. The government had the responsibility to supervise and intervene.Second, according to the previous studies and the experiences of most developed and emerging countries, OTC bond market has been proven to be the most efficient way to trade bonds. It must be the inevitable choice of china's bond market. And then, national inter-bank bond market should transfer into it.Third, three strategies are brought about, which are transformation, innovation and opening strategies.All above are the conception and generally logic structure of this thesis. There are some innovations in this thesis:First, the research analyzes the policy backgrounds and causes of establishment of china national inter-bank bond market systematically for the first time. Among the present academic researches, a great many discussions concentrate on the principal drawbacks, the basis of which actually comes from the specific situation of china's economic environment and policy backgrounds. This paper takes it as a breakthrough, trying to construct a unified frame to handle this problem.Second, in the 4th chapter, three strategies are brought about, which are transformation, innovation and opening strategies. This is a creative method to construct OTC bond market in china.Third, this research newly defines the OTC market, pointing out that with the development of securities, western countries have changed the operation and administration of the past OTC market, especially the market infrastructure and legislation system in order to make the OTC market more transparent.Fourth, much valued experience of OTC bond market is introduced, including not only developed countries such as the USA, Japan but also some emerging bond markets like Korea, Singapore, etc. These materials are most significant for any further study.