The Research On The Impact Of Development Of China’s Corporate Bonds On The Credit Market

With the rapid development of China’s securities market, the scale of corporate bonds is increasing, and the function of corporate bonds is gradually known to the public. More and more enterprises begin to realize that, as a direct means of financing, there are some advantages in corporate bonds. Domestic enterprises gradually prefer to finance through issuing corporate bonds. Therefore the effect of corporate bonds on China’s economics is increasingly prominent. The impact of development of China’s corporate bonds on the credit market has gradually emerged as also. Based on the above, to promote China’s capital market and even the stability of the entire financial market, there are great theoretical and practical significance in the research on the impact of development of China’s corporate bonds on the credit market.On the background of the rapid development of corporate bonds in recent years, the paper starts with that there is the impact of development of China’s corporate bonds on the credit market in theory. Drawing the model of impact of the development of corporate debt on the credit market, this paper focus on assessing the impact by qualitative and quantitative assessment.The ultimate goal is to find the block factors in the impact and solve it. The paper trys to answer these questions:How does the development of corporate bonds affect the credit market? How to assess the impact? Based on China’s national conditions and the situation of China’s corporate bonds market, How to enhance the impact? Using data from2005Ql to2011Q2of China, the empirical study shows that there is a long-term negative cointegration relationship in the development of China’s corporate bonds and the scale of the credit market, the development of China’s corporate bonds can be regarded as the cause of affecting the scale of the credit market, and the impact has long-lasting effects; it then enhance the financing efficiency of China’s capital market. The paper finds that in order to enhance the effect and the financing efficiency of China’s capital market, it’s necessary to improve the infrastructure of corporate bond market to consolidate it’s foundation of impacting on credit markets, expand the scale of corporate bonds to enhance it’s capacity of impacting on the credit markets, and make corporate bonds impact on the credit market by more smooth means to directly enhance the effect.