Study On The Influencing Factors Of The Corporate Bonds Development In China

The corporate bonds is one of the important ways of business financing, and plays an important role in stablizing the financial market and avoiding financial crisis. After the Asian finacial crisis, corporate bond markets across Asia have developed to different extents, but it still develop slowly significantly in China. The key of this paper is to analyze the factors which influence the development of corporate bonds in China, find out the cause why the corporate bond markets in our country developed so slowly, and give some useful suggestions.This paper first summarizes the related theories about corporate bonds in the literature review. And then the comparison between the development of corporate bonds in seven Asian nations and China after Asian financial crisis is analyzed. On the one hand, the macroeconomic factors influencing corporate bonds issuing in Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore and Thailand after the financial crisis is compared with that of China through empirical research; on the other hand, the institutional factors influencing the development of corporate bonds are discussed. Compared with Japan, South Korea, Malaysia, Thailand and other nations in Asia, the institutional factors that constrain the development of corporate bonds in China are demonstrated from the perspectives of perfection of laws and regulations, setup of clearance & settlement system, improvement of cultural support and so on. Finally, some suggestions concerning the policy of developing the corporate bonds in China is proposed.