The Study Of Chinese National Debt Market Problems

Since the beginning of this century, economies of many countries experienced a severe test. In the year of 2007, sub-prime crisis occurred in the United States, and then in the year of 2008, the financial crisis swept the whole world. As a result, the world economy is struggling to recover from the crisis. However, although this crisis does not fully disperse, European countries suffer from different levels of the debt crisis, which we must pay more attention to it. In this background, studying on the bond issue has important practical significance.Bond refers to the state finance as the debtor, and the state's financial commitment to debt service as a prerequisite. Issuing securities is a credit behavior by way of loans or securities to raise funds. Issuing treasuries is an important means of macroeconomic control, a good combination of fiscal policy and monetary policy, which requires it can accurately reflect the demand of the economic health and stability, sustainable growth, and play a positive in the development of economy. With the development of world economy, people's understanding on the bond is more comprehensive and the active role on the bond is gradually affirmed. Bond market is as an important part of the national economy and plays significant role in the development of a country, but the function of bond realizes depending on the government decision behavior, This dissertation studies the essential meaning of the bond market, summarizes the experience of foreign debt development, eventually points out problems of the bond market in our country and proposes solutionsFirstly the dissertation starts from domestic and foreign classical literatures and the bond theory review, summarizing different times and different views of scholars, specially focusing on outstanding bond research results from the history of economics, and combining the relative maturity of development experience of bond in western countries. The article summarizes the current problems from the points of the bond scale, variety, pricing method, distribution and other aspects of China's Bond Market, and offers the corresponding solution. The dissertation employs theoretical analysis and the method of empirical study to research bond issues and eventually point out solutions, This article focuses on the China's bond market System, in the year of 1988, China has established national bond counter market; in 1991, China established the exchange bond market; in 1997, commercial banks left exchange bond market and joined the inter-bank bond market, from then inter-bank bond market and bond market in stock exchange market coexist; in 2002, China launched book-entry bonds counter market in commercial banks. This paper studies the situation of inter-bank bond market and stock exchange bond market segmentation from theoretical analysis and empirical testing, selects three bonds traded in the exchange inter-bank bond market and meanwhile in the stock exchange market, and carries on comparative study of their different market volatility in two markets. Besides, basing on the weekly return rate of inter-bank bond index and bond index in the stock exchange market, empirically analyzing return volatility through EGARCH-M model and finding that the distribution of the return of bond index showes significant non-symmetry and the left side, fat tail properties, bond market volatilities have significant gaps between two different markets, but the difference of long-term return rates in the two markets is small, and the bond index volatility in the short period is significantly greater than the long period of volatility, which suggests that the government should aggregates two markets and gradually establish a unified bond market, form a reasonable market pricing system, and ultimately eliminate the system causes of speculation.