| As China's national economic development, the financing needs of various enterprises gradually release, which proposes more stringent requirements to China's financial system.Thus, developing the capacity of financial markets and improve the quality of financial services has become an important factor for sustained and rapid development of China's economy. Corporate external financing comprise of debt financing and equity financing. In China, only a small number of listed companies can issue stock. For most enterprises, the important and effective channel to raise long-term funds is the issuance of enterprise bonds. Corporate bond financing can not only improve the firm's capital structure, reduce the cost of corporate financing, but also to stabilize the country's financial system. However, China's corporate bond market is relatively small, and the market maturity is not high. In this paper, we will study the relationship between institutional investors and the corporate bond market, which is with great practical significance.This paper firstly reviewed the development process of China's corporate bond market, then did in-depth comparative analysis on China's corporate bond market characteristics and existed problems, summed up the successful experience of mature bond market and found the important role of institutional investors in the mature markets. Based on this, this paper conducted an empirical analysis on the relationship between China's corporate bond market and institutional investors, selecting three types of institutional investors including banks, insurance agencies and funds to study institutional investors'impact on the corporate bond markets. After that, this paper further demonstrated that institutional investors can significantly incur the development of China's corporate bond market.Finally, based on empirical results obtained, this paper concluded and provided a number of strategic proposals to develop corporate bond market. |
PDF Full Text Request