Present Situation And Countermeasures Of China's Paper Market

The market of note cannot only reflect the supply and demand state of monetary, but also its development expands the throwing channel of the basic currency of Central Bank and perfects the conduction mechanism of monetary policy. So it extends the multiplier effect of the macro-adjustment and control policy, which has been playing an important role in the financial market.The note market of our country has experienced several stages, starting, developing, normal and rapid development and it has reached the comparatively rational state of development at present. But the development of note market lags behind other sub-markets of monetary market, (Such as, stock market, fund market, bond market, short-term loans market of the same trade, etc.) Especially in 2003, high-speed note market was influenced by the rate of rising reserve capital and the stagnate of transferring and sticking market. The turbulence happened and the hitting for the pet banks was obvious. In the first half of the year, because the range of capital was relatively wide and loose, some pet banks were obvious. In the first half of the year, because the range of capital was relatively wide and loose, some pet banks took the policy of incurring debts on their own initiatives and over- depended on the outside fund and expanded assets in order to reach the win-win of the deposit and income. After the market fund shrinked, the mobile risk manifested. Some enterprises faced the danger of rupture of fund chains and the banks faced the pressure of the rising of the non-performing loan.With the rapid development of the note business, there are some problems in the note market of our country: the note idling products foam; a large amount of financing note exists; the note market disconnects with other sub- markets seriously; the cases of the note happen frequently. According to these problems, there are the following concrete measures; firstly, setting up thenationwide unified note market. Secondly, widening the business scope of note and promoting thet development in pluralism of the business of note. Thirdly, establishing in the intermediary officesof note market. Fourthly, relaxing the controlling of interest rate and marketizing the interest rate progressively. Fifthly, strengthening the management of note and taking precautions against the risk of note. To the financing note, this text thinks that the financing note will go on the front stage of the note market in the period of future and it will have a great influence on the managing pattern, managing mode and the methods of supervision. Call upon setting up the market of financing note and put forward the relevant suggestions.