Research On The Development Of Chinese Enterprise Bonds Market Under The Perspective Of Decreasing Risk

With development of global capital markets, there is a growing tendency for enterprises to raise funds from direct financing. The ratio of direct financing to indirect financing has been deemed as an indicator of the maturity of a country’s financial market. A well-developed and efficient corporate bond market is of great importance to restructure the economy and maintain steady economic growth. It can facilitate the diversification of corporates’financing approaches, improve the financial environment, and maintain the steady operation of the whole financial system.In developed countries, the bond markets are much larger than stock markets in terms of either market size or growth. However, at the current stage, Chinese enterprises mainly relies on banks and the stock market as financing sources, and corporate bonds only account for a very small portion of the total funding amount. Such situation may do harm to the healthy operation of the capital market, and impede the normal functions of the capital market. Hence, we must make great efforts to develop the corporate bond market, which has been made very clear in the recent government announcements.This article analyses China’s corporate bond market from the view of decreasing risk. Firstly, this article analyses the role of the corporate bond market in resisting financial crisis, which is one of the innovations of the article. Secondly, this article analyses the status of China’s corporate bond market and the approaches to solve credit risk. Thirdly, this article made advice regarding the future development pattern of China’s corporate bond market, and proposed that under the perquisite of solving risks, improving the infrastructure of the corporate bond market is the most important to the development of China’s corporate bond market, which is another innovation of the article.