The Structure Of China's Bond Market Rationality

In the modern market economy, the central bank implements monetary policy through carrying out open market operations of national debt. And this approach has become an important policy-based measure for developed countries to realize the objectives of economic development. The central bank buy or sell national debt in national debt market to increase or reduce monetary base, so whether or not national debt market is developed influences directly open market operations and the effectiveness of monetary policy. On the other hand, the central bank is usually the most important participant in national debt market, so its open market operations can promote the development of national debt market to a great extent.Since national debt was reissued in China in 1981, its annual issuing scale and balance has increased successively, so the national debt market has had a great development. In recent years, the national debt market in China is not only seen as a source of financing by central government, it also becomes an important place for Central Bank to carry out open market operations and for various types of financial institutions to manage their current assets and a place to invest in by all kinds of investors as well. Nevertheless, the national debt market in China is far from mature. Compared with the operations of those developed countries under market economy, the deficiency is obvious and its structure has numerous defects at present. The structure issues of national debt market in China hinder seriously open market operations, and this consequence in turn affects the development of national debt market. Therefore, according to the new situation of national debt market, the thesis studies the structure issues of national debt market from the angle of the demand for national debt market for monetary policy, which is of great significance for both the development of national debt market and the implementation of monetary policy in China.The thesis is organized as follow: Considering the relationship between monetary policy and national debt market, based on the systematic analysis of the current status of the scale, term structure, participant structure and circulating market structure, by combining the case analysis with normalization analysis, through comparing China's national debt market to the circumstances in foreign countries, from the angle of the demand for national debt market for monetary policy, the thesis discussed and explored the structure issues of national debt market at present in China. Furthermore, it put forward some policy advice on improving the structure of national debt market.