Research On The Development Problems Of China’s Corporate Bond Market

Financing is difficult to the small and micro enterprises in our country for a long time,which restricts their development. There are two reasons to explain the phenomenon: one isthe singe level of China’s bond market in which the issuance conditions are strict; the otherone is the high cost of the bank loans or the equity financing. So accelerating thedevelopment of China’s bond market system is important. With the new request of financialsystem reform and supporting the real economic to develop put forward in the report on the18th National Congress of the Communist Party of China (CPC) in2012, and themarket-oriented economic reforms are emphasized on the Premier Li’s Government WorkReport in2014, deepen the financial system reform has become the top priority of China’seconomic transformation. How to speed up the development of China’s bond market andpromote multi-level capital market system construction have been an important task of thetransformation of the economic development pattern in our country, which have provided aspace and a development opportunity for our regional corporate bond market. At present, as aprimary market of capital market, our local property market has been an important role inpromoting the development of the local economy. Relying on the local property market fullyis very important to promote the development of Chinese regional corporate bond market ininnovation, which is meaningful to solve the financing problems of small and microenterprises and improve the multi-level capital market system.Firstly, this paper introduces the related concepts of regional corporate bond market afterit describes the status quo of Chinese bond market development and the requirements todevelop the bond market and to increase the proportion of direct financing as the background;Secondly, being based on the financing theory, property rights theory and the theory of multi-level capital market, author analyzes the current development of Chinese bond market and theproperty rights market, as well as the necessity and feasibility of development of Chineseregional corporate bond market, and then I propose the main obstacles and problems about the development of the regional bond market; Finally, according to the current situation andeconomic characteristics of Chinese capital market, author makes a innovative design to theoperating mechanism of developing Chinese regional corporate bond market relying onproperty rights trading market from the angle of improving multi-level capital market systemand standardizing market operation system. Then, in order to overcome the obstacles, authorproposes a series of countermeasures from the provisions of laws and regulations, regulatorymechanisms, infrastructure, public awareness, aspects of building the credit rating system,risk control mechanism and so on.