Current Situation, Problem and Solution of the Bond Market of China

Research Article
Open access

Current Situation, Problem and Solution of the Bond Market of China

Yanwen Zhang 1*
  • 1 University of Birmingham, Birmingham, UK    
  • *corresponding author YXZ060@student.bham.ac.uk
Published on 21 March 2023 | https://doi.org/10.54254/2754-1169/4/2022954
AEMPS Vol.4
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-17-1
ISBN (Online): 978-1-915371-18-8

Abstract

In 2010, the economy scale of China has become the second largest in the worldwide after exceeding Japan which just next to the economy scale of United States which has kept playing an important role in the global economy. In this case, more and more attention has been focused on it and especially for its financial market which is young but huge in scale. However, as the Chinese financial market was firstly established in 1993, the history of its development is very short and the research related to it is very limited, particularly for the bond market of China which has a very different institution and structure compared with the bond market of the main developed countries in the world where the main changes are followed by the instruction and plan of the government. As the bond is the financial instrument which decides the interest rate, its market has a great influence on the financial liquidity of the whole economy. In addition, the high interest rate in the bond market of China compared with the other bond market has also attracted the foreign investors in the whole world to increase their investment to the market. Therefore, studying the bond market of China is very helpful in understanding the current situation of the bond market of China so as to find out its problems and solutions which are very important for the economy to grow in a healthy way. In this paper, the solutions of how to solve the problems about the risk, market efficiency and the sustainable development of the bond market of China will be analyzed based on its current situation including the structure and scale.

Keywords:

Bond Market of China, Credit Rating, Scale, Market Efficiency, Structure

Zhang,Y. (2023). Current Situation, Problem and Solution of the Bond Market of China. Advances in Economics, Management and Political Sciences,4,554-560.
Export citation

References

[1]. Fung, H., Liu, Q., Zhang, F.: The Development of China’s Bond Market. The Chinese Econ-omy, 52(1), 107-123(2019).

[2]. FTSE Russell.: Chinese government bonds-a high yield market in a low yield world. Availa-ble: https://www.ftserussell.com/blogs/chinese-government-bonds-high-yield-market-low-yield-world-0(2021) (Accessed: 10 July 2022)

[3]. Bardhan, P.: The Chinese governance system: Its strengths and weaknesses in a comparative development perspective, China Economic Review, 61, 1-6(2020).

[4]. FTSE Russell.: Bond market of China: Evolution and characteristics. Available at: https://www.ftserussell.com/research/chinese-bond-market-evolution-and-characteristics(2020) (Accessed: 7 July 2022)

[5]. Seafarer.: The Evolution of China’s Bond Market. Available at: https://www.seafarerfunds.com/commentary/the-evolution-of-chinas-bond-market/ (2021) (Accessed: 7 July 2022)

[6]. Zhang. W., Wang, J., Tong, W.: Research on Bond Participants’ Emotion Reactions Toward the Internet News in China’s Bond Market, Frontiers in Psychology, 13, 1-13 (2022)

[7]. Wu, Y., Tian, Y.: The price of carbon risk: evidence from China’s bond market, China Journal of Accounting Research, 2 (15), 216-232(2022).

[8]. Liu, K.: The Chinese Government Bond Markets: Foreign Investments and Market Efficiency, Global Journal of Emerging Market Economies, 14(1), 93-104(2022).

[9]. Huang Z., Huang, H., Song, Y., Feng, T.: Earnings management, analyst forecasts and credit rating of corporate bond: empirical evidence from Chinese listed companies. Journal of Fi-nance and Economics, 8(1), 21-32(2019).

[10]. China Daily.: China local govt bond markets get fresh boost. Available at: https://www.chinadaily.com.cn/bizchina/2015-01/02/content_19221804.htm (2015) (Ac-cessed: 7 July 2022)

Cite this article

Zhang,Y. (2023). Current Situation, Problem and Solution of the Bond Market of China. Advances in Economics, Management and Political Sciences,4,554-560.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅱ

ISBN：978-1-915371-17-1(Print) / 978-1-915371-18-8(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://www.icemgd.org/
Conference date: 6 August 2022
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.4
ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Fung, H., Liu, Q., Zhang, F.: The Development of China’s Bond Market. The Chinese Econ-omy, 52(1), 107-123(2019).

[2]. FTSE Russell.: Chinese government bonds-a high yield market in a low yield world. Availa-ble: https://www.ftserussell.com/blogs/chinese-government-bonds-high-yield-market-low-yield-world-0(2021) (Accessed: 10 July 2022)

[3]. Bardhan, P.: The Chinese governance system: Its strengths and weaknesses in a comparative development perspective, China Economic Review, 61, 1-6(2020).

[4]. FTSE Russell.: Bond market of China: Evolution and characteristics. Available at: https://www.ftserussell.com/research/chinese-bond-market-evolution-and-characteristics(2020) (Accessed: 7 July 2022)

[5]. Seafarer.: The Evolution of China’s Bond Market. Available at: https://www.seafarerfunds.com/commentary/the-evolution-of-chinas-bond-market/ (2021) (Accessed: 7 July 2022)

[6]. Zhang. W., Wang, J., Tong, W.: Research on Bond Participants’ Emotion Reactions Toward the Internet News in China’s Bond Market, Frontiers in Psychology, 13, 1-13 (2022)

[7]. Wu, Y., Tian, Y.: The price of carbon risk: evidence from China’s bond market, China Journal of Accounting Research, 2 (15), 216-232(2022).

[8]. Liu, K.: The Chinese Government Bond Markets: Foreign Investments and Market Efficiency, Global Journal of Emerging Market Economies, 14(1), 93-104(2022).

[9]. Huang Z., Huang, H., Song, Y., Feng, T.: Earnings management, analyst forecasts and credit rating of corporate bond: empirical evidence from Chinese listed companies. Journal of Fi-nance and Economics, 8(1), 21-32(2019).

[10]. China Daily.: China local govt bond markets get fresh boost. Available at: https://www.chinadaily.com.cn/bizchina/2015-01/02/content_19221804.htm (2015) (Ac-cessed: 7 July 2022)

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.