On The Feasibility Of Carrying Out Financing Paper In China

Paper Market is an important part of the money market,it share more and more proportion in the financial market of our country. According to the function of the bill,the bill is not only payments, settlement and exchange functions as well as financing capabilities. Financing instruments that are not trade background and embodies the authenticity of bills financing, credit function of commercial paper, it has essentially different of transaction pape. to play a more functional finance and credit notes.Paper market in China over a long period of development, has formed a preliminary scale and point towards the deepening of reform, but the bill financing in the paper market and our country is not well utilized, China’s "Negotiable Instruments Law," for real bills defining a large extent also limits the development of financing instruments. However, as China’s paper market matures, carried out in China has a very important financing instruments, it can not only improve the transmission mechanism of monetary policy to ease the financing difficulties of SMEs in the short term, but also to improve the social credit system, reduce banking supervision cost.Over the paper market in some developed countries, financing bills have occupied a very important position, it is extremely important on the paper market financing tools, more mature foreign markets for China to carry out the development process of bill financing bill provides a wealth of experience. The gap between domestic and international market instruments and contrast the difference is explained Necessity and Feasibility of Launching financing instruments.However, the bill market in each country has a distinct unique market characteristics, China’s conduct of business financing bill still faces many risks and obstacles. For example, financing instruments legal status not determined, the lack of mature market management system, social credit rating system needs to be improved,corporate credit transparency is not high, there is no question of effective market delisting mechanism is to carry out the challenge of financing instruments need to face. Therefore, developing financing instruments must be gradual, from shallow and deep, carried out in stages. By gradually improving external environment and the gradual opening of the market to gradually form a highly efficient, dynamic, and flexible financing bills market having the characteristics of the market mechanism.