Research On Corporate Bond Market In China

Corporate bond market develops very maturely in western countries, and corporate bond financing has already been main financing mode of company. However, China corporate bond market just keeps forepart now. At present, it has important practical significance to research on China corporate bond market, and which may improve capital market development and optimize company financing structure in the country.Firstly, corporate bond basic concept and west debt financing theory are introduced at the beginning of this thesis. Amendatory MM theory demonstrates that the higher debt financing proportion, the bigger company's value. Preferential financing theory says that the best sequence for financing is inner financing, issuing corporate bond then stock. Thus it can be seen debt financing is preferred outer financing mode. But in China, almost all companies have a predilection for stock financing nowadays. Development of corporate bond market has not been paid attention to sufficient regard.Secondly, theory summarizes development status and experience of international corporate bond market. Such as, credit rating system, information disclosure system, issuing register system and investors participant, all of them have positive reference value to China's corporate bond market development.Thirdly, thesis researches on the growth lag reasons of China's corporate bond market. IT is due to regulatory system problem, imperfect rule of law, nonstandard credit rating system and negative investors, etc.Lastly, suggestions will be made for the current development of China bond market with specific measures and regulatory system at the end of theory. A preferred mode of regulation will be derived for China corporate bond market with emphasis on credit rating and information disclosures. Further more, corporate bond issuing, pricing and exchange market, all above will be established well in the country hereafter.In short, corporate bond development has potential market largely on immature capital market period in China. Government should create better circumstances to support corporate bond market sustaining development. Let China's corporate bond market play an important role in international capital market.