Research On China's Financing Bill Market Finance

Financing bill is mainly referred to the commercial bill that issuing party issues to other parties based on his own reputation and aimed at financing on the background of no actual trades existing between different market parties. On May 2005, PBC initiated short-term loaning bonds which substantially are no-guaranteed financing commercial promissory notes issued on the back of issuer's own credibility. The push-out of short-term loaning bonds is a vital move deepening China's financial reform and abounding varieties of money market, which should change the ratio imbalance between direct and indirect finance, flesh out conductive mechanism of monetary police, safeguard integral stability of finance and promote overall, harmonious & sustainable development of financial market. During the past few years, the development of China's financial system has obviously took on the look that capital market prior to money market, inter-banking market prior to bill market, which should lead to serious development hysteresis of bill, bond market and so on. Furthermore, credit instruments chronically stands at the dead state. Although the birth of Note Act 1998 restricted the issue of financing bills from the prospective of jurisprudence, presently the major transacting varieties of international bill markets are financing bills. Prohibitive listed-circulation of financing bills causes the following deficiencies such as petty market scale, segmented national market and interest, single bill variety, rules-violating actions, etc. So systematic and comprehensive development of China's bill market has...