China Railway Bond Financing Research

At present, China railway enterprise faces the enormous gap of fund problem with the railway striding development continuously carried forward, which to some extend restricts the steps of railway reform. Solving the great problem of fund problem during the China railway construction and explore the railway financing reform become the dynamic power to promote the China railway enterprise development. So we must build on the existing foundation to broaden the financing channels and new financing methods. Of these, bond financing is an important object to study. The railway construction bonds are issued by Ministry of Railways and make the railway construction fund as collateral. They are not standardized corporate bonds. Moreover, its issuing system is imperfect and the scale is smaller.This paper is under the guidance of the financing theories and analysis of the advantages and disadvantages of Chinese railway bond. My research will re-classify the railway construction bonds into financial bonds and corporate bonds by based on China's current situation. The former is the evolution of railway constructing bonds and the latter make the railway enterprises as the true issuer. Moreover, this paper analysis of the factors of affecting the issuing size of the railway bonds by demonstration research and found some key factors.Finally, by combining theory and practice, on the special industry background of China railway, we get following conclusion:under the current situation that the railway construction finances is in the large shortage, expand the issuing size of railroad bonds and perfect related issuing system of railway bonds is the way of developing China's railway bonds. At the same time, after research and analysis, we get some inspiration, and give some accordingly recommendations.