Harmonization Of East Asian Bond Market And China's Countermeasures

The outbreak of the Asian Financial Crisis made all Economies in East Asia to have been aware of that underdevelopment of East Asian capital market is a big problem, especially, faultiness of East Asian Bond Market. Although East Asia has a high saving rate and foreign exchange reserve with more than trillion dollars, most of reserves pour into western developed financial markets. Economic development in East Asia depends overly on banking financial institutions and exterior financing. It results into currency mismatch and maturity mismatch (Double mismatch). If East Asia can form a territorial bond market that transform mint saving to regional productive investment, it will can turn the complexion of over-dependence on dollar assets and banking financial institutions, and improve the ability to overcome financial crisis. However, legal and regulatory framework, rating agencies, accounting and auditing standards and trading, clearing, settlement systems of all the Economies'bond markets in East Asia are in various diversity. The developmental level of East Asian Economies'Bond Market is uneven. Hence we must build an efficient East Asian bond market for stable economic growth and integration of East Asian financial markets. Harmonization among all Economies'bond markets is the only way for that.According to the connotation of East Asian Bond Market harmony development, this paper shows firstly the status quo of East Asian Bond Market and the signification of the development of East Asian Bond Market, and then analyzes detailedly harmonious issues about supervising regulation, rating agencies, accounting & auditing standards and trading, clearing & settlement systems. Finally, in connection with the status quo of China's Bond Market, this paper put forward China's countermeasure about participating in harmonization of East Asian Bond Markets.The issue of the harmonization about East Asian Bond Markets was brought forward on the ASEAN+3 Finance Ministers'Conference in Istanbul, Turkey in May 2005. So far, there is a lack of research on that abroad, even in China. Shortage of references about the issue brought extraordinary inconvenience. Of course, it indicates that the paper is useful complement for former documents about East Asian Bond Market, not denial or mend.