China's Bond Market Liquidity

liquidity is very important to the bond market. It is one of the cores in the bond market characters. Usually the quality of bond market is determined by measuring the bond market liquidity. Good liquidity is one of the targets of design market trade system. Sufficient liquidity of bond market ensures free trade of bond. If bond secondary market has no enough liquidity, it will result in difficult trade of bond and primary market can't exist too. The question of liquidity is the basic question in market microstructure theory and is relevant to all factors of market running, liquidity is significant to the development of China's bond market. Advance of liquidity not only help the whole financial market to run normally, but also is in favor of improving resource allocation and economic rising. Now the mature bond markets in the world pay attention to the maintenance and the development. So, the research of liquidity of China's bond market is very necessary. With the change of the society economic condition, the bond market and theories need to develop continually. The improvement of the bond market in China follows in order and advance step by step, and need the people know fully the essentiality of liquidity.The thesis comprises six chapters. Firstly, the thesis introduce and analyzed the basis theories of bond market liquidity which include the meaning of liquidity of bond market, the measuring indicators and the significance of bond market liquidity;Secondly, the paper made a deep analysis on the government bond market and the enterprise bond market;and then, the article discussed the influencing factors of bond market in China;At the end of this paper, some countermeasures and suggestions about solving the questions of liquidity of China's bond market.The thesis got this conclusion that the quality of bond market in China is very important to the developing and perfect Chinese bond market and should be paid great attention to. The bond market with enough liquidity is of great advantage to play the function of bond market and to develop the harmonious society.