Central Bank: Six to encourage 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 pointed out that the cause of China’s corporate bond market lagged behind the development of an important reason is that the risk of corporate bonds, disposal and management problems.
To this end, Yi Gang from the six localities suggested to enhance the capability of disposal and administration of risk, and encourage the development of business bonds, encompassing expanded market transparency, reinforcing the bonds of the major information; to encourage the development of the bond ranking bureaus, reinforce the bond ranking bureaus market positioning and the function of research; cultivate trained institutional investors, institutional investors play in the administration of risk and disperse the dangers and other advantages; to reinforce market infrastructure, advance the business bond issuance, underwriting, trusteeship and liquidation and other connections .
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 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 sharp out that the development of business bonds lagged behind the development of other economic markets, need of direct financing of the development will not only outcome in the accumulation of bank risk and sway the steadiness of the economic scheme and economic markets will furthermore sway the wideness and deepness, limiting the market function and to farther enhance market efficiency.
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