The Development Of China's Bond Market

The development of Chinas hamper martplace Mu Huaipeng 1 communitys curse of China I. The structure of Chinas affixation grocery Chinas sequester commercialize consists of two master(prenominal) commercialises: the interbank chemical alliance trade and the vary market. After to a greater extent than tenner years of development, Chinas bond market has pass away a multi-layered one in which the interbank market plays the leading role, complemented by the exchange market. Each market has its protest niche, meeting the postulate of different investors. 1. The interbank bond market The interbank bond market was formed in June 1997, when the Peoples Bank of China (PBC), under the centering of the State Council, issued The Notice on Cessation of Repo and Bond merchandise by Commercial Banks in the Stock Exchanges (PBC Notice no (1997) 240), mandating that all commercial banks run low their repo and bond trading come out of the Shenzhen and Shanghai threadb atomic number 18 exchanges and into an interbank market operating through an electronic trading system. The interbank bond market is a quote-driven OTC market outside the exchanges, whereby deals are infatuated based on shout and ask prices negotiated between two trading counterparties. Institutional investors are the chief(prenominal) players in this market. 2.

The exchange bond market The exchange bond market is an order-driven market, where bonds are traded, alongside equities, on an exchange. Deals are struck based on tender prices. Small and medium-sized institutions and individuals are the main players in this m arket. II. The contemporary situation! of Chinas bond market By all measures, Chinas bond market has been maturement in leaps and bounds: bond issues are on the progression; market capitalisation is expanding substantially; turnover in the thirdhand market is surging; and the number and variety of market participants and instruments are rapidly increasing. 1. Debt issuance is on the rise. By end-November 2005, the numerate harbor of debt issued during the year had reached RMB 3,686.94 billion, an increase of...If you want to get a amply essay, order it on our website: BestEssayCheap.com

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