The Research On The Effectiveness Of Corporate Bond Market In China

The Corporate bonds as a bond,compared to its corporate bonds appear time is shorter,but development is very fast,especially since new rules on the implementation of corporate bonds in 2015,with its fast approval and issuance of low interest rates,capital USES the advantages of the flexible,and compared with the corporate bonds in the net assets,net profit constraints on the advantages and the increase of the expansion of issuers,the issue place,bonds varieties increased,greatly expanded the scale of corporate bond market.According to the statistics,as of December 2017,the stock of corporate bonds in the market reached 4,427,and the amount of bonds in all bonds was 11.95 percent,ranking the second place in the number of issuance.Therefore,the emergence of corporate bonds for rich capital market bonds investment varieties,promote the deep development of the capital market financing ways,etc.,and increase the company has a lot of positive role.Research on the effectiveness of the market has a positive effect on improving the market operation mechanism and promoting the development of corporate bonds.What about the effectiveness of the corporate bond market?Existing literature research mostly focused on the national debt market,rarely focus on the question of the validity of this field,even if the occasional research literature took place in a few years ago,did not explore the problems of the current effectiveness of the market,and often stop at the empirical level of weak effectiveness.On the basis of this paper,the effectiveness of domestic corporate bond market is further discussed.This paper briefly reviews the literature on the effectiveness of the bond market at home and abroad.Then to the traditional a brief review about the theory of efficient market hypothesis,including the development of the hypothesis,appearance and assumptions and classification,the phenomenon of anomaly is given based on the market at the same time for the in-depth analysis;Secondly,this paper introduces the current development situation and liquidity situation of domestic corporate bond market,and gives some reasons for its market effectiveness.Based on the traditional efficient market hypothesis,this paper conducts an empirical test from two aspects:weak and semi-strong.Weak validity check,based on the theory of yield distribution is subject to random walk model,using the runs test,serial correlation test and variance ratio test,structural time series GARCH model to verify whether they meet the condition of weak validity.The empirical results show that the domestic corporate bond market is not yet a weak and efficient market.Semi-strong efficiency test,this article from the aspects of event study to the corporate bond market,semi-strong inspection in the end,the domestic corporate bond market is still not reach the semi-strong efficiency is satisfied.After the conclusion of the empirical study,the reasons for the empirical test of corporate bonds in China are analyzed,and some relevant policy Suggestions are given according to the reasons.In the end,the paper summarizes the whole paper and gives the direction of future empirical test based on the problems encountered in this paper.