The Research On The Market Discipline Of Corporate Bond Supervision In China

As the important part of bond market, corporate bond is an issue channel ofdirect financing for enterprises, improving regulatory system of corporate bondmarket is an important measure to further promote the development of China’scorporate bond. Now, the official regulatory standards of bond market is establishing,and the importance of market discipline has not been generally recognized, it is keyissue that how to exert market forces and Let the market play a decisive role in theallocation of resources. Therefore, studying the meaning and effectiveness of marketdiscipline will help us to understand the bond market discipline mechanism,improving the bond market multilevel regulatory system and promoting the healthydevelopment of the bond market.According to "Theoretical foundation-the mechanism analysis-empiricalresearch-Suggestions ", follow the "theory-positive-strategies" research ideas toexplore the issue of market discipline. The first, brief combing corporate bond marketdiscipline definitions and basic theory, clarifying the relationship between marketdiscipline and official supervision; Secondly, analysis the development process andthe situation of China’s bond market,combing the main types of market discipline andexternal conditions, then exploring the market monitoring and market influencing ofmarket discipline, Focus on market monitoring of corporate bond primary market andto pave the way for the empirical analysis; Again, select enterprise bonds,medium-term notes, corporate bonds as a sample, study the discipline of credit ratingon issue cost in the primary market with TIC regression model, t hen using yieldspreads-risk model to test bond investors’ risk sensitivity under the same creditrating, in order to study market monitoring of corporate bond primary market; Finally,based on the results of qualitative analysis and quantitative analysis proposingmeasures to improve market discipline of bond market, in order to promote China’sbond market to build multi-level regulatory system.This study shows that market discipline of bond market is exist to some extent,but not obvious, it is difference between different subjects: market monitoring ofcorporate bond primary market mainly for credit rating discipline, investor risksensitivity is weak, it is difficult for investors to promote corporate improving thebusiness through risk identification and supervise. Therefore, some effective measures must be taken to improve the level of market discipline mechanisms ofcorporate bonds: enhancing the credibility of bond ratings, strengthen the existingrating discipline effect, investors’ risk identification and monitoring capabilities arealso concerned, Thus promoting the healthy and orderly development of the corporatebond market.