Research On The China’s Bond Market Liquidity

Liquidity is the vitality of the bond market, but also to measure an important indicator of the quality of the bond market, plenty of bond market liquidity of China’s bond market sustained and healthy development significance major. And that is what investors can freely traded security. Since the last century since 70s, the balance of the western countries accounted for the proportion of GDP rising, related theory and practice of the emerging, the economy, the financial had a huge impact. And in our country, due to historical reasons, for the bond market research and practice in long-term blank state, until the early 1980s, China began to gradually restore the issuance of bonds, especially after entering the market economy era of the 1990s, increasing the scale of the issue of China’s bond, whether it is primary market issuing scale, issue, term structure, breed type or secondary market organization form, trading system, and the structure of participants and trading varieties, have made great progress, but for a long time, imbalance in the development of China’s financial system, the low proportion of direct financing, bond market development is still lagging behind. Because of the characteristics of the bond market with the money market and the capital market, the formulation and implementation of macroeconomic related to the central bank open market operations, the process of marketization of interest rates and a series of macroeconomic policy, medium to the production and operation of enterprises and the investment and financing strategy, improve the capital structure, the effective use of financial leverage to micro financial solutions of citizens the selection of individual social and economic life and the bond market operation, remarkable importance in the bond market, but the contrast is either in theory or practice, research on the bond market of China’s study is not sufficient, and mobility is the key to the rapid development of the bond market. At present, the development of China’s bond market is a weak link is the bond market illiquid. Therefore, the development of the bond market, it is necessary to research on the liquidity of the bond market, analysis of factors influencing the liquidity of the bond market, find ways to enhance the level of liquidity in the bond market to create conducive to enhance the level of bond market liquidity of the market mechanism and the market environment, the improvement of liquidity is not only helpful to guarantee the normal operation of the whole financial market. It also helps to improve the allocation of resources and economic growth.This paper focuses on how to improve China’s bond market liquidity. Firstly, the paper introduces the status quo of China’s bond market; then on the liquidity of China’s bond market are empirical, analyzing the reasons for the bond market liquidity individual period due to the fluctuation of the; and then on the three main factors that affect our country bond market liquidity were research and analysis, find out the developing direction in order to enhance the liquidity of the bond market; finally, it expounds the policy suggestions to improve the liquidity of the bond market in our country. The main work and conclusions are as follows:1. Introduces the general situation of China’s bond market, enable us to study the liquidity of the bond market scale, Quanzhong structure, turnover situation, market structure has certain understanding.2. Of China’s bond market as a whole the mobility of the exchange rate index for the empirical measure, choose 2002 January to December 2015 data do as a sample, for 2012-2013 bond market liquidity appear decline reasons were analyzed.3. According to the empirical analysis, summed up China’s bond market liquidity of the market factors and institutional factors, affect the choice of China’s bond market liquidity of the three main factors of bondmarket investors structure, bond product innovation, market maker system do the research and summary. It is pointed out that the development direction in order to enhance the liquidity of the bond market in our country. On the current China’s bond market investors structure imbalance and investment demand convergence factors are analyzed; introduces the development of our country SME private debt development prospects and impact, compared with U.S. high-yield bonds, summarizes the development experience of American high-yield bonds, and points out the development direction of private debt of small and medium-sized enterprises in China on the development of asset securitization; business opportunities are analyzed in detail, and points out the direction of development of asset securitization in China; to promote the interactive development of the cash bond market bond futures market and the stock exchange, to improve the liquidity of China’s bond market, from real time custody transfer mechanism, expand the scale of treasury bonds, deliverable bonds, ETF the bond mechanism margin pointed out the development direction of China’s treasury bond futures; the relationship between liquidity market maker system and the bond market is studied, from a market maker as the core of the bond market stratification system angle of the mature bond market maker system experience are summarized, and pointed out the direction for the development of China’s market maker system according to the new exchange bond market maker system development practice. 4 put forward the policy and suggestion to improve the liquidity of China’s bond market.