| Liquidity is very important to the bond market. It is one of the cores in the bond market characters. Usually the quality of bond markets is determined by measuring the bond market liquidity. Good liquidity is one of the targets of design market trade system. Sufficient liquidity of bond market ensures free trade of bond. If bond secondary market has no enough liquidity, it will result in difficult trade of bond and primary market can’t exist too. The question of liquidity is the basic question in market microstructure theory and is relevant to all factors of market running. Advance of liquidity not only help the whole financial market to run normally, but also is in favor of improving resource allocation and economic rising. Now the mature bond markets in the word pay attention to the maintenance and the development. So, the research of liquidity of China’s bond market is very necessary. With the change of the society economic condition, the bond market and theories need to develop continually. The improvement of the bond market in China follows in order and advance step by step, and need the people know fully the essentiality of liquidity.Interbank bond market is one of the essential parts of the finance market. Nation interbank bond market have developed rapidly since it is established in June,1997. Interbank bond market, which have already become the main place of issuing bonds, has corpus of transaction abundant varieties of transaction, increasing transaction scale, more active transaction, deepened market-oriented, and the main market of opening investing and transaction between the financial institutions, and it is also the important carrier of central bank’s monetary police, so Interbank bond market is bound to develop in market economy.As the main place of financial institution’s liquidity management, the Nation interbank bond market developed normally, the market basis facility become more perfect, the transaction net extends unceasingly, the bodies of transaction increase largely, the transactions are more active, and it have an important role in the development of the finance since the Nation interbank bond market is established in 1997. Nation interbank bond market exerts important role for the central bank’s monetary policy.An important character of capital is the liquidity which means when the dealer in the market exercises many financial transactions, the capital price could keep stable. Therefore the liquidity of the national interbank bond market has been a focus in the economic and financial theory field. At present the bond repurchase and trade are the main dealing in the national interbank bond market, among which bond market is regarded as the main index measuring the liquidity. Though there are large bond storage, the bond market are inactive. From the above, we will find low liquidity and price creating function of the national bank bonding market could seriously effect the central bank monetary policy conduction and money instruments efficiency. So establishing a high efficiency, low cost and full liquidity bonding market is an important part of our financial reform.The paper firstly introduces the establishment, present situation and development. Secondly, the paper elaborates the performance of low liquidity of interbank bond market on the concept-basis of its liquidity, and analyzes specifically by establishing the index of liquidity. The third part analyzes the varied factors of influencing the liquidity of Interbank bond market. Finally the paper suggests the improvement of liquidity of Interbank bond market should perfect the Interbank bond market according to the principle of steadiness norm, and provides the suggestions of improving the liquidity of Interbank bond market at the present situations. |
PDF Full Text Request