Building debt capital markets in China

本研究的主要方向分为三个方面。主权债券：涉及中央政府向国内外储户发行的短期票据（国库券）和长期票据（国库券和债券）等证券的交易。这个市场的现代化和自由化通常是通过组织证券发行来进行的，以允许在不到一个月到二十年或更长时间的整个期限结构范围内进行交易。通过发布标准化合同（例如，不可赎回、不可分期偿还的债券），它可以让用户和财政当局在很长一段时间内灵活地管理风险。通过套利过程，它可以促进货币市场和债务资本市场中使用的各种其他工具的流动性交易的发展。开放这一市场包括增加参与市场的机构的范围，取消或大大放松数量控制。支持这一进程的体制发展涉及简化和有效监管交易前和交易后服务，包括做市（一级和二级）、清算和结算、管理中央证券存管机构和保管人。这一市场的发展往往伴随着货币控制方法的改变，逐步取消数量工具（信贷数量，准备金率......）。对通过广义货币总量和基于价格的（利率）政策工具进行控制的依赖增加。利用流动性高的主权债务市场实施货币政策，要求政策制定者重新思考他们希望如何实现价格稳定、汇率和信贷（及投资）增长的目标。公司债券：发展一个广泛和流动性强的公司债券市场可以提供一种有效的手段，向私营部门企业提供资金，作为银行融资的替代办法，从而降低债务资本的成本，从而促进增长。对于储蓄者来说，投资于广泛分散的公司债券投资组合可以提供比单独投资于股票市场或银行储蓄账户更好的风险调整回报。作为人寿保险公司和养老基金的主要投资工具之一，它们可以在退休金融中发挥巨大而重要的作用。发展一个有效的公司债券市场需要克服一系列重要的体制挑战。它要求提供投资者保护，防止滥用交易做法。这些都依赖于发行人、保险、养老金和基金管理公司健全的会计和报告标准。它要求收集和传播有关信用记录和评级的信息。它需要有设计良好的破产制度，有健全的法律的基础和有效的管理。公司债券市场可能会因到期日和发行人的法律的地位而变得支离破碎。提供公司债券的流动性交易具有挑战性，制定回购协议、证券借贷和其他形式的证券融资交易可能是降低交易成本的关键。次主权/市政债券：债券市场的这一部分旨在为没有中央政府预算支持的公共部门投资提供资金。它涉及区域和地方政府以及特殊目的公共和准公共实体（公路当局、水务当局等）发行债券。这一细分市场的发展与地方公共财政的组织密切相关。因此，我们的研究必须考虑到中国政府实体和国有企业的特殊组织结构。在目前情况下，该领域的改革需要处理大量不良贷款的问题。

The main directions of our project are organized under three headings.Sovereign bonds: This concerns the trading of securities issued by the central government to domestic and foreign savers including short-term instruments (Treasury bills) and longer term instruments (Treasury notes and bonds). The modernisation and liberalization this market has typically proceeded by organizing security issues to permit trading over the full range of the term structure from less than one-month to twenty years or more. By issuing standardized contracts (e.g., non-callable, non-amortizing bonds) at regular intervals it can allow users and the fiscal authority the means of managing risks flexibly over a very long time horizon. Through a process of arbitrage it can facilitate the development of liquid trading of a wide range of other instruments used in money markets and debt capital markets. Liberalizing this market involves increasing the range of institutions participating in the market and eliminating or greatly relaxing quantitative controls. Institutional development to support this process involves simplification and effective regulation of pre-trade and post-trade services including market-making (both primary and secondary), clearing and settlement, managing central securities depositories and custodians. The development of this market is often accompanied by a change of the methods of monetary control with the progressive elimination of quantitative tools (credit quantities, reserve ratios...) and increased reliance on controls through broad monetary aggregates and price-based (interest rate) policy tools. Implementing monetary policy using a liquid sovereign debt market requires policy makers to rethink how they hope to achieve objectives for price stability, exchange rates and credit (and investment) growth. Corporate bonds: The development of a broad and liquid corporate bond market can provide an effective means of providing funds to private sector enterprises as an alternative to bank finance which may result in lower costs of debt capital and thus promote growth. For savers investing in a broadly diversified portfolio of corporate bonds can provide better risk adjusted returns than investing in stock markets or bank savings accounts alone. They can play a large and important role in retirement finance as one of the main investment vehicles for life insurers and pension funds. Developing an efficient corporate bond market involves overcoming a range of important institutional challenges. It requires provision of investor protections against abusive trading practices. These rely on sound accounting and reporting standards for issuers, insurance, pensions and fund managers. It requires collection and dissemination of information about credit histories and ratings. It requires well-designed bankruptcy regimes with sound legal foundations and efficient administration. Corporate bond markets can become fragmented across maturities and legal status of issuers. Providing liquid trading of corporate bonds is challenging, and developing repurchase agreements, securities lending and other forms of securities funding transactions can be key to reducing transactions costs. Sub-sovereign/muni bonds: This segment of the bond market is directed at the funding of public sector investments that are not supported by the budget of the central government. It involves bond issues by regional and local governments and special purpose public and quasi-public entities (highway authorities, water authorities, etc.) The development of this market segment is intimately related to the organization of local public finance. Thus our research will necessarily take into the account the particular Chinese structure of organizing both government entities and also state owned enterprises. In the current context reforms in the area will need to deal with the issue of an overhang of non-performing loans.