Assessment of Bond Market in China

Mengran Qin

Master's thesis

Abstract:

A bond is one of the financial instruments which helps deficit units borrow money from the surplus units. It is usually considered as a part of the portfolios which designed by insurance companies and banks. The aim of the thesis is the assessment of the bond market in China, the main goal is the analysis of China’s bond market through the bond trading activities and comparing with American bond market, and finding the disadvantages of China’s bond market, then get some lessons. Generally speaking, this thesis has five chapters. The first chapter introduces the main goals and the structure of the thesis. In the second chapter, we will introduce the basic information of bond market, the type of bond and main functions of bond market. The third chapter of this thesis is the structure of bond market in China, first, it introduces the overview of bond market in China, then introduces the structure of bond markets in China, main participants and trading mechanism and regulation. In the fourth chapter, it introduces the development of China’s bond market, trading activities and current situation, the relationship of interest rate and inflation, comparison of the most important corporate bonds and government bonds in China. Then we compare the development, type, regulation and supervision, credit rating, market participant, secondary market liquidity and custody agency of China and American bond market. Finally we get some weaknesses of China’s corporate bond and government bond, and give new trends of China’s bond market. And in the last chapter of the thesis, it is a conclusion of thesis. This part sums up differences with American bond market and draws a conclusion of China’s bond markets.

Abstract:

A bond is one of the financial instruments which helps deficit units borrow money from the surplus units. It is usually considered as a part of the portfolios which designed by insurance companies and banks. The aim of the thesis is the assessment of the bond market in China, the main goal is the analysis of China’s bond market through the bond trading activities and comparing with American bond market, and finding the disadvantages of China’s bond market, then get some lessons. Generally speaking, this thesis has five chapters. The first chapter introduces the main goals and the structure of the thesis. In the second chapter, we will introduce the basic information of bond market, the type of bond and main functions of bond market. The third chapter of this thesis is the structure of bond market in China, first, it introduces the overview of bond market in China, then introduces the structure of bond markets in China, main participants and trading mechanism and regulation. In the fourth chapter, it introduces the development of China’s bond market, trading activities and current situation, the relationship of interest rate and inflation, comparison of the most important corporate bonds and government bonds in China. Then we compare the development, type, regulation and supervision, credit rating, market participant, secondary market liquidity and custody agency of China and American bond market. Finally we get some weaknesses of China’s corporate bond and government bond, and give new trends of China’s bond market. And in the last chapter of the thesis, it is a conclusion of thesis. This part sums up differences with American bond market and draws a conclusion of China’s bond markets.

Keywords

regulation；trading activity；rating；bond market, ；comparison；structure；new trend；analysis；risk

Keywords

regulation；trading activity；rating；bond market, ；comparison；structure；new trend；analysis；risk

Language used: English

Date on which the thesis was submitted / produced: 21. 4. 2017

Thesis defence

• Date of defence: 30. 8. 2017
• Supervisor: Kateřina Kořená
• Reader: Tomáš Tichý

VŠB - Technical University of Ostrava

Ekonomická fakulta

Master programme / field:
Hospodářská politika a správa / Finance