Central Bank: Six to promote the development of bond market
People's Bank of China Deputy Governor Yi Gang said Monday, in spite of the assorted sorts of company bonds in fresh years that there had been some development, but the complete scale of development is still quite tiny, for this six-pronged force from the company 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 added that market regulators should be strengthened, it is necessary to avoid over-regulation resulting from the financial depression, the development of the market constraints and to avoid over-confident that the market structure and corporate governance shareholder binding, leading to regulation is not in place.
Corporate bonds to lift long-term capital for the general public to scrounge cash, and from digressive financing for example bank borrowings contrasted to bonds pattern of direct financing for example smaller financing charges and, thus, more conducive to the development of business 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.
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