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| Maturity Difference between Chinese and American Corporate Bond Markets and Its Implications |
| HU Yao-ting1, CAO Ping2 |
1.Research Institute of Shenzhen Stock Exchange, Shenzhen, Guangdong, 518038;
2. Department of Economics and Trade, Guangdong Institute of Finance, Guangzhou, Guangdong, 510521 |
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Abstract Maturity structure is an important indicator of the financing efficiency of corporate bond markets. In comparison with US, maturities of bonds at China's corporate bond market are shorter, and the difference in this regard is growing between the two countries in recent years. There are three reasons for this difference: Firstly, the development of corporate bond markets in the two countries is at different levels. Secondly, the two countries have different focuses in fiscal and monetary policies. Thirdly, the two countries have different financial systems. Shorter maturities indicate China's corporate bond market needs to improve it abilities to serve real economy. Lengthening maturities depends on improvement of financial market and coordination of fiscal and monetary policies, three suggestions are therefore proposed as guidance for the development of China's medium- and long-term corporate bond markets: First, we should enhance cooperation at bond markets and address the issue of shortage of investors at the bond markets at stock exchanges. Secondly, we should, with innovative products such as CDS, make bond markets more appealing to investors. Thirdly, we should take the initiative to attract long-term funds into the corporate bond market.
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Received: 07 March 2017
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2017, Vol. 34 
