Credit Bond Market In China Development Status And Problems

As one of the direct financing way for corporates, bond financing has made an unprecedented development over the past few years, and the statistical numbers of issuing volume and stock volume have presented an exponential growth. At the same time, the efficiency of bond issuing and the liquidity level of the secondary market have also been significantly improved. In China, the bond financing market for firms is undergoing a rapid development period.Credit bonds in this article is defined from the corporate financing terms, including three categories or six kinds, which are bonds issued by firms, non-finance enterprise debt financing tools which also include short-term financing bonds and medium-term notes, corporate bonds (general) including corporate bonds, convertible bonds and separable bonds in detail. The key chapters of the article is the third, fourth and fifth chapters. Chapter III made the latest summary for our credit bond market from multiple perspectives, in details, issuing volume and stock volume, the distribution system, market liquidity, as well as the core of credit market:credit rating. Chapter III lays a foundation for the latter two chapters. The fourth chapter brings forward the main problems of credit bond market in current China, involving issuer constitution, the efficiency and marketization degree of issuing market, the liquidity of secondary market, credit rating, etc. Based on the fourth chapter, Chapter V proposes specific recommendations using the foreign experience for reference with the hope that our credit bond market can gain a sustained, rapid and stable development.The main conclusion of this article is that the current credit bond market can not be summarized by "backward". Its position in the whole bond market has been significantly improved. Indexes such as circulation / whole bond circulation, circulation / GDP and market liquidity have caught up even exceeded that of the corporate bonds in the USA, in which the bond market is the most developed. However, because of the relatively short history(in fact, the rapid development only represented in recent years), credit bond market is still weak in the aspects of system, regulation and innovation. There are still several problems existing in the interest rate setting mechanism of first market, the trading mode of secondary market and credit rating mechanism. In order to let the credit bond market maintain rapid growth momentum, we need gradually sweep away these barriers. Correspondingly, this paper puts forward a list of elementary recommendations.