The Research On Inter-bank Bond Market Innovation Management Of China

In this paper, the inter-bank bond market development and management has been researched for the study. Combined with macroeconomic analysis, we researched the system, product, transaction components and regulatory perspective of inter-bank bond market innovation management issues based on the financial market microstructure theory. Not only of the development of inter-bank bond market, "economic" issues, more focus on the inter-bank bond market, propose solutions to the process of innovation "management" measures. Such studies point to grasp both the general direction of development of the market, but also improve the trading mechanism, market rules and product development, increase market efficiency and provide theoretical and practical guidance. At the same time, this article will apply the market microstructure theory to the inter-bank bond market innovation and development, in the hope of providing an alternative idea for the health and stable development of China’s bond market, and the enhancement of core competitiveness of multi-level capital market.Through theoretical analysis and empirical testing, this paper focuses on solving the following six questions:Firstly, through economic theoretical model analysis of the reality and potential demand of innovation of inter-bank bond market, and the supply condition of capital market to inter-bank bond market, revealing the current insufficient innovation of China’s inter-bank bond market, and this paper examines the correlation between China’s inter-bank bond market and its economic development.Secondly, through the analysis of the inter-bank bond market performance status, using liquidity as the indicators of performance, this paper measures the liquidity indicators with different authentication methods, and proposes specific measures to increase the country inter-bank bond market liquidity.Thirdly, through the study of foreign bond market innovation development process, this paper researches and refines the developed and emerging capital markets experience in the bond market innovation, on the basis, proposes the innovation and development path of China’s inter-bank bond market.Fourthly, from the supply and demand characteristics, risk characteristics and flow characteristics of three perspectives, compared with other types of financial innovation products (mainly stocks and bonds products), this paper provides the main features of inter-bank bond market, as well as the general framework of innovation management of inter-bank bond market in China.Fifthly, through the analysis of product innovation characteristics and development trend, this paper designs the system, products and trading elements of China’s inter-bank bond market based on financial market microstructure theory.Sixthly, this paper proposes the innovation direction and risk control measures of China’s inter-bank bond market.By researching the questions above, this article believes that China’s inter-bank bond market innovation is very necessary and urgent, and proposes the general frame of the bond market innovation management, that is not only product innovation, but also market innovation. At last, this article provides content and suggestions of innovation in the government, investors and the issuer’s point of view, from a macro point of distribution system, trading system, market maker system, information disclosure system, supervision mechanism, the interest rate pricing system as well as from a micro point of issuers, institutional investors fostering, transactions varieties and construction.