Model Of Development Of The Chinese Paper Market Research

This paper aims at analyzing the development pattern of China's bill market from the perspectives of both macro- and micro-economic level. First of all, based on related financial market theories, a definition and systematic classification of bills are first made in this paper, as well as the major participants in bill market, including borrower, lender, market organizer and market monitors. As one of the major financing tools, the functions of bill in financial market are summarized as facilitating exchange and balancing, providing credit, financing, circulating, and payment tool. Secondly, based on the analysis on the development history, especially the present features of bill markets in development countries, such as Japan, U.K, Germany and the U.S., this paper points out how to establish and develop China's bill market while learning from the successful experience of those countries. In general, even though an obvious discrepancy exists among those countries in terms of financial market structures and financing patterns, bill market has always been one of the major financial markets for them. At present the bill markets in developed countries are characterized as large market volume, continuous financial innovation and the wide range of market participants, and by comparison there exist various problems such as fewer transaction tools and smaller market scale in China's bill market, which remarkably limits the role of bill in financial market. In the third part, this paper retrospects the history of bill market in China and focus on analyzing the existing problems in today's bill market. Based on the above analysis, the development pattern of China's bill market is investigated finally, including both the basic development principles and specific development strategies. It is concluded that China's bill market should be developed according to the four basic principles: efficiency, risk control (include credit risk, liquidity risk, systematic risk, legitimate risk and management risk), coordination and market opening. In the meanwhile, the development of bill market can be focused on the transaction participants, transaction tools, transaction price and transaction method, and therefore, it is suggested that we should draw out the development strategies based on the four aspects, such as expanding the variety of transaction tools, promoting the role of market intermediaries, regulating market transaction and establishing technology-supporting system.