Analysis, On The Corporate Bond Market Development

Corporate bond market is important component of capital markets. Development and perfection of corporate bonds are related to construction of financial system of China. In other countries issuing bonds is one of main ways of enterprises financing. The amount by issuing bonds is several times than amount by issuing stocks. Financing by issuing bonds dominates in direct financing. In financing system of our country financing by banks is leading, by issuing stocks subsidiary. Scale of corporate bond market is less. At present china is in special era from planning economy to oriented-market economy. Such financing structure is faced with enormous financial risks, reducing functions of capital markets and restricting functions of corporate bonds market. Corporate bond market of china have developed for more than ten years, Meanwhile the development experienced twists and turns. Through ten years' exploration corporate bond market of china has a certain achievement, at the same time corporate bond market accumulates many experiences and creates conditions for further development of corporate bond market. In fact the development of corporate bond market of china is slow. The reasons of developing bonds market slow involve in government' policies restricting the development of corporate bond market such as interest regulation and so on. Enterprise property right system with ambiguous property right is a fundamental reason making corporate bond market lagged. Nonstandard credit-evaluating organizations are obstacles of developing corporate bond market. Among such many reasons, that enterprise property right system doesn't match the development of oriented-market economy is essential reason of developed corporate bond market lagged. Government should reform current enterprise property right and establish real modern enterprise system etc to accelerate the development of corporate bond market.