Analysis Of China's Bond Market Opening And Its Main Influencing Factors

Since the 1980s,the bond market has developed rapidly and become an important part of China's financial market,playing an important role in financ:ing and wealth management.In recent years,China's financial system reform has always been committed to expanding the proportion of direct financing.As one of the direct financing platforms,bond market has been paid more and more attention for its own development and degree of openness.After years of development,the bond market has become a market with rich varieties,diversified market participants and complete trading and clearing technologies.It is now the third largest bond market in the world.Although some achievements have been made in the development of the bond market,there is still a lot of room for development and the degree of openness of the bond market is far less than that of developed countries.Foreign investors make up as much as 50 percent of the US bond market,compared with about 2 percent of the Chinese bond market.The low degree of openness of the bond market is also closely related to the lack of its own development.China's bond market is obviously divided,the diversity of varieties needs to be improved and the development of derivative market lags behind,which also leads to the unguaranteed liquidity.In addition,there are some problems in the bond market.The holder structure is too simple and transaction clearing and settlement system lag behind.All these have some impact on the opening process of the bond market.This paper firstly sorts out the process of bond market opening and analyzes the significance of bond market opening in China's financial and economic development.The opening of bond market can not only complement the internationalization of RMB,but also play an important role in supporting the"One Belt And One Road"strategy.This also explains why we are studying the issue of opening bond markets.After that,this paper analyzes the problems existing in the bond market and provides a reference for the problems to be concerned and the feasible direction in the opening of the bond market.At the same time,this paper reviews the opening process of mature and open bond markets in developed countries,hoping to provide reference for China's bond market opening.The main factors influencing the bond market open has carried on the theoretical empirical analysis in the next part in the article.The results show that the bond market's openness is related to the degree of openness to trade and openness of the capital account,per capita GDP,financial market development degree and government leverage.The improvements of these factors can to some extent improve the openness of the bond market.Finally,through the results of empirical analysis and combined with the experience of the bond market in developed countries,we make some suggestions for the bond market opening.