Research Catastrophe Bonds Issued In China

China’s vast land, vast, making China one of the most serious and frequent natural disasters in countries around the world suffer, combined with our country in the circum-Pacific seismic belt area, the frequency of seismic activity dramatically, causing heavy casualties and property losses each year. Therefore, in order to bear the loss caused due to the catastrophe, had invested enormous human and material resources, it is not only the compensation catastrophe losses, but also to prevent that catastrophe risk. However, China’s catastrophe risk mainly by the burden of government expenditure, resulting in catastrophe risk capital in relatively tight defense, and low efficiency of resource allocation, is not conducive to economic development. Therefore, the need to establish a market mechanism catastrophe prevention system and the effective allocation of economic resources, that is, by the insurance company or reinsurance company to conduct insurance catastrophe.The traditional model is the catastrophe insurance market in terms of catastrophe risk insurance company insurance through reinsurance by reinsurance companies, which not only leads to the moral catastrophe risk insurance risk, the risk of adverse selection, and leads to reinsurance companies underwriting capacity and solvency greatly hampered. Through securitization of insurance risk, market mechanisms can be implemented insurance market, particularly through the issuance of catastrophe bonds can play to their market advantage. It is suitable for China’s current transfer catastrophe risk of a financial instrument such as earthquakes. Catastrophe bond issuance to better financing, transfer of risk in the capital markets. Given that China is constantly a huge natural disaster-prone situation, the necessity of issuing catastrophe bonds are also present. On the one hand to promote the realization of China’s insurance market market, optimizing resource allocation insurance; on the other hand favor compensation catastrophe. The article is divided into five parts, the first part of the first catastrophe bond issuance from the background and significance of China, points out in the face of catastrophe-prone country in order to fully play the role of insurance, the background and significance of issuing catastrophe bonds. Interpretation of the relevant researches pointed out the significance of the progress of the catastrophe bond research at home and abroad, and in practice. Analyze the contents and methods of this study, concluded that innovation and shortcomings at this article. The second part describes the earthquake on the issue of Taiwan’s housing bonds. The third part of the Taiwan Residential Earthquake bond analysis, first of all, be analyzed from the 2003 Taiwan earthquake housing bond issuance generation, and the status of the issue, highlighting the necessity and feasibility of its release. Secondly, the comparison with other insurance tools, highlighting their relative advantages. Finally, analysis of factors affecting the Taiwan Residential Earthquake bonds to arrive at the most reasonable way of issuance. The fourth part analyzes the necessity and feasibility of cat bonds issued in mainland China. The fifth part of the Taiwan issue catastrophe bonds and make relevant suggestions and countermeasures.