Research On The Mechanism Design Of Development Constraints Of Chinese Corporate Bond

Since the reform and opening up, China’s economy is showing a good momentum of rapid development.After the establishment of market economy status,a variety of enterprises in China mushroomed and grown up. But in the progress of economy development, many companies,especially the majority of small and medium enterprises,are facing a worldwide problem-financing difficulties,mainly as single channel of financing,high costs.which were many developed countries hardly to solve in the development stage, which were also been concerned by the governments.Though specialized policies, documents have came out to encourage the development of the company’s debt in2007, but the reality of corporate bonds has been in very difficult situation, no matter compared with loans, stocks and notes, or with the treasury bonds, financial bonds, corporate bond in the bond market, company bond always in a poor situation, these is no comparison between company bond and them in terms of scale, the issued amount and turnover can not be compared with them. Of course, there are many objective constraints, but the interior design problems of the corporate bond market itself is the key factor, and many of the external limiting factor is actually inspired by the inherent problems.Our country in the way of corporate finance, bank loans, indirect financing has been dominated by the primary position, the limitations of this mode of financing is: higher costs, banks are often in disguise to impose a fee, or request to loans transferred; long approval cycle procedures complex and often have to go through layers of approval and inspection; use limit more stringent, and generally not used to cover losses and to invest in securities, and often designated purposes; loans a long time, in addition to infrastructure construction loans, the vast majority in mainly short-term loans; loan main limitations are a number of large companies easy access to loans, other and limited companies it is difficult to obtain funding this way. Owed developed China’s financial markets, financing is more a single, direct financing, the more developed stock market, and its limited to the stronger of the listed companies, the enterprise is difficult to match. Direct financing of the financial markets of developed countries, mainly in the bond market is very developed, and a dominant position. China’s bond market will have less and more, more single bond types, and most of the bonds, municipal bonds, corporate bonds in recent years has been the development of a certain size, but the issue of corporate bonds are mostly state-owned enterprises or central enterprises, essentially government credit. Inflationary pressures in recent years, the money supply continued to tighten, financing is more difficult, so the development of the majority of small and medium enterprises to benefit from the corporate bonds look increasingly prominent.Since2007,specialized policies, documents have been implemented to encourage the development of the company bond.But in reality.company bonds has always been very difficult compared with loans, stocks and notes, or government bonds, financial bonds, corporate bonds within bonds market.Company bond is always in an inferior position.its scale.amount and turnover can not be compared with them.Of course, there are many objective constraints about company bonds.but the most important factor is the interior design problem of itself, and many of the external limiting factor is actually inspired by the inherent problems.This paper mainly proposes strategy and policy recommendations by analyzing the limitation factors in the development of China’s company bond market.First of all, from the relevant finance theory,this paper explains and compares the pros and cons of different financing options, points out that debt financing has become the main means of financing in the markets of developed countries today, and also will become the development direction of China’s financing methods inevitably; Second, by comparing the development background and history’of the company bond, especially comparing the difference between company bonds and corporate bonds, citing relevant data and compared with other forms of financing.pointing out the necessity and urgency of the development of China’s company bonds; and then, through the mechanism design and so on,the paper analysis and identify us the limitation factors of company bond, and to analyze; Finally,the paper analyze the mechanism design,risk,etc.Based on it,the paper propose measures and recommendations.Many scholars belive that the restrictions of company bond development is external objective problems.But in the text.mainly from the standpoint of mechanism design.the paper analyze and connect it with the internal mechanism design,lead out the real reason is due to the unreasonable internal mechanism design.Through comparative analysis.the paper make relevant suggestions.When global economy facing U.S.dept and the Europe debt crisis.economy is in weakness globally,and the macro background of domestic tightening monetary policy to fight inflation.the paper analyze the restrication factors of the mechanism design in the development of chinese company bonds,and make recommondations.The paper have some practical significance to meet the needs of company financing and the development of China’s multi-level capital market.