Analysis Of Short-Term Bond's Actuality And Development In China

Because of the weakness of our enterprise's credit idea and distempered ness of related law, the development of commercial bill in our country is very tardily. Receiving loans from bank is the most common method in our financing system. The unbalance between direct and indirect financing and some problems due from it make our market faces the chock point in its development way.The enterprise's short term bond is the breakthrough in this background, its emergence filled up the blank of our short-term credit market, it's the important breakthrough in our financing method and important act in our financing market construction.Short term bond is a kind of securities which issuing by non-financing enterprise in inter-banking security market, and promised by the issuer to repay the capital and interests in some fixed date. The character of this short term bond is similar to the commercial bill in developed countries. Since the appearance, short term bond has gained rapid development because of its convenient issuing method and cost advantage over other facilities. There are 61 enterprises totally gained 142.4 billion Yuan through this facility since May 24, 2005, in this day, the first group of short term bond come into the market, this kind of high-speed development trend has reinforced this year.Short term bond brings opportunities and challengers for each body which participated in it. It widens the direct financing channel and reduces the cost for enterprise;It can alleviate the uneasy financing problem for medium and small business enterprise effectively;It speeds up the business innovation step and helps to optimize the asset sheet structure of the commercial bank;It changes the unbalance situation between direct and indirect financing and sets the condition for each sub-market's harmony development;It gets through the transmit mechanism of monetary policy and speeds up the development cause of interest rate's marketable.It is only one year time for short term bond advent in the money market. We will meet some difficulties in this cause. The book-keeping filing method will lead to interest rate unmarketable;we don't know if we have the track credit evaluation in the cause of issuing and circulating.Short term bond is a new facility in the market, so it will need improvement in some aspects. Issuer, market maker, agent institution and other participator must stick to the market law at the very start, only in this way, we can acquire a health and ordered short term bond market.