A Study On The Liquidity Of Chinese Corporate Bond Market

Chinese debt market especially corporate date market become the "Short Slab" in chinese capital market. This paper pay attention to the development of chinese corporate date market from the angle of liquidity. The qulity of corporate debt market's liquidity have much to do with the transaction cost which is from the transfer of securities. At the same time it is the presupposition for the financier to finance. If the absence of liquidity give birth to the harder transaction, it make no sense for the exist of securities market. Therefore the liquidity is the important performance of securities life-force.The paper systematically arranged the history of chinese corporate bond market. We lay emphasis on the corporate bond effect on the stability of bank and the corporate governance by using of event study. In order to learning the current situation of chinese corporate bond market's liquidity, the paper use the statistical analysis method by which we can describe the issuing and transaction market of chinese corporate bond. In the paper we analyse the influence factor of chinese corporate bond market's liquidity from the perspective of market microstructure and national macro-system. We make the analysis by constructing the model. In order to better study the Chinese corporate bond market's liquidity, the paper arrange a lot of measurement index about market liquidity. On this basis, we explore the structure of Chinese corporate bond market liquidity's measurement. According to the empirical analysis we can confirmed its legitimacy and stability. This paper argues that the development of Chinese corporate bond market is still at a relatively early stage, macro-system level problem such as the diversification of issue on Chinese corporate bond and the flexibility of trading mechanism, the independence of credit rating that require priority.