The Analysis Of The Unbalanced Development Of Chinese Corporate Bond Market

Since the Asian financial crisis in 1997, many international financial institutestook part in the analysis of the bond market in Asian countries. People recognized oneof the important reasons for the financial crisis was that the financial system in Asiancountries mostly depended on the banks, and the bond market didn't go into effect,especially the corporate bond market. China also has the same characteristics as theother countries in Asia. On the one hand, Chinese corporations always deeply dependon the bank loans, which is much more than the amount of the capital from issuingcorporate bonds; on the other hand, Chinese security market also has the sameproblems as the security market in the countries which experiencing the financialcrisis, such as the unbalanced development between the corporate bond market andthe stock market. In 1980s Chinese stock market and corporate bond market began todevelop together, so far the stock market has quickly become larger and larger, but thecorporate bond market just has made little progress and can't catch up with the stockmarket. So this article will analysis the unbalanced market and give some suggestionsfor the future development.This article is divided into four parts. Part one provides the needed concepts forthe following analysis, including bond, corporate bond market and bond finance. Parttwo is concerned with an analysis of unbalanced market, along with the comparison ofChinese stock and bond market, and the comparison of the markets between China,America and Japan. From the above analysis, we can conclude that Chinese corporate bond market still develops slowly and needs large development. Part three focuses onthe reasons of the unbalanced markets, including the problems in its IPO market andsecond market, credit rating system, and the corporation managers' preference onbank loans and stock market. Part four discusses the prospect of Chinese corporatebond market and gives some suggestions.By conducting the in-depth analysis of the article, we could gain a thoroughunderstanding about the following aspects of our corporate bond market: the statusquo, underlying problems, unbalance of development as well as prospects...