On The Development Of China's Bond Market And Perfect

Government bond, which is an important component in the bond marker, is the main form of government credit. It is a relationship formed by the central government, as the debtor, with the investors, as the creditor. Nowadays, issuing bonds has become an important way of raising capital for the government of every country. Once issued, government bond starts circulating in the market as an important financial means. It has developed into an important segment in the money market, which is what we call the government bond market. In the developed countries, the securities market has become the main place where individuals, corporations and other social economic organizations invest their money. In our country, securities investment is just starting up and prospering rapidly. Government bond is an important form of securities. Investing in government bond is thereby an important part of securities investments. Since the government bond issuance was resumed in 1981 in our country, government bond and the bond market is becoming a more important way for the central government to raise capital and balance macro梕conomy. Government bond has entered into people?s social and economical life and is becoming an important form of investment. However, with the expansion of the issuance of government bond and the consequent growth of the government bond market in depth and breadth, and especially after the government bond circulating market was established, the old government bond system can nor keep in pace with the development. For a government bond investor, the only way he can stay ahead in the highly volatile market is by learning the basics of government bond and government bond market, applying different trading methods skillfully, speculating correctly on the trend of the market price and investing with the best timing. This article is intended to state my personal perspectives andsuggestions on the development of our government bond marked based on the current situations in our country and the developing trend in the future in the hope that it may be of some help to the perfection of our government bond marked. Part I defines government bond, analyzes the government bond market structure and points out the two functions raising capital and balancing economy, of the government bond market. Part II makes suggestions on the perfection of the government bond market based on the research done on the issuance mode, scale and terms of government bond. Part III is on the possibilities of setting up government bond investment funds in our country. Part IV is on the management of the market. I have just started my research on the government bond market and due to the limitations of my knowledge on this subject, both my theoretical research and my practices may be superficial in many ways, or even be mistaken to some extend. I sincerely welcome the corrections and suggestions from the teachers and classmates.