Central Bank: Six to endorse the development of bond market

People’s Bank of China Deputy Governor Yi Gang said Monday, despite the various types of corporate bonds in recent years that there had been some development, but the overall scale of development is still relatively small, for this six-pronged push from the corporate bonds market.

Yi Gang incisive out that the source of China’s company bond market lagged behind the development of an valued justification is that the risk of company bonds, disposal and organisation problems.

To this end, Yi Gang from the six areas proposed to enhance the capacity of disposal and management of risk, and promote the development of corporate bonds, including increased market transparency, strengthening the bonds of the main information; to promote the development of the bond rating agencies, strengthen the bond rating agencies market positioning and the role of research; cultivate qualified institutional investors, institutional investors play in the management of risk and spread the risks and other advantages; to strengthen market infrastructure, improve the corporate bond issuance, underwriting, trusteeship and liquidation and other links .

He supplemented that market controllers should be reinforced, it is essential to bypass over-regulation producing from the economic despondency, the development of the market constraints and to bypass over-confident that the market structure and business governance shareholder binding, premier to guideline is not in place.

Corporate bonds to hoist long-term finance for the general public to get a advance of wealth, and from rambling financing for instance bank advances weighed against to bonds configuration of direct financing for instance worse financing charges and, consequently, more conducive to the development of company finance.

Yi Gang incisive out that the development of company bonds lagged behind the development of other fiscal markets, deficiency of direct financing of the development will not only effect in the accumulation of bank risk and act on the constancy of the fiscal procedure and fiscal markets will in addition act on the broadness and extent down, limiting the market function and to farther enhance market efficiency.