How to improve China s treasury bond market and how to control the scale of China s treasury bonds

While China's treasury bond market is booming, we should also be aware that because it was formed relatively late and is constrained by various objective factors, there are still various deficiencies that urgently need to be further regulated and improved. (1) Further improve the treasury bond issuance market. The mature treasury bond issuance market should include the diversification of the structure of treasury bonds, the rationalization of the maturity structure, and the competition of issuance methods, but judging from the current situation of China's treasury bond issuance market, it is obvious that there is still a lot of work to be done in these aspects.

2) Enhance the liquidity of the treasury bond circulation market. Introduce treasury bond trading brokers and give full play to the prominent role of the brokerage system in media market transactions; Increase the variety of treasury bonds in a timely manner to increase the choice of investors; Establish a modern treasury bond trading system and a settlement and clearing system; Promote the development of over-the-counter transactions and activate spot trading of treasury bonds. (3) Cultivate a stable group of treasury bond investors.

China should vigorously cultivate institutional investors in treasury bonds, attract more financial institutions and social security enterprises to participate in the treasury bond market, and form a stable treasury bond investment group. (4) Strengthen the legalization of the treasury bond market. A sound treasury bond market is indispensable not only for a mature mechanism for the issuance and circulation of treasury bonds and a stable investment entity, but also for a sound system of laws, regulations, and supervision.

With regard to the construction of the supervision system of the treasury bond market, it is necessary to clearly define the scope of responsibilities of the Ministry of Finance, the People's Bank of China, and the China Securities Regulatory Commission, avoid cross-management, and at the same time actively bring into play the front-line supervision and information reporting functions of trading venues and custodian and settlement institutions, and gradually form an efficient and sensitive supervision system.

Answer]: a, b

Examine the Gongling Xiangqing of the national bond market banquet.

The treasury bond market generally has two functions: to realize the issuance and repayment of treasury bonds; Regulate the operation of social funds.

The CDE option is a policy function for Treasury bonds.

Hello dear, the size of China's national debt is determined by Jane, and its main purpose is to raise funds to support the economic and social development plan of the country. The main methods of controlling the scale of national bonds should be as follows: 1

Adjust fiscal policy. By adjusting the fiscal policy, we will control the expenditure and reduce the fiscal deficit, so as to control the scale of the national debt. 2.

Adjust monetary policy. By adjusting the monetary policy, the amount of money is controlled, so as to control the scale of the national debt. 3.

Issuance of special bonds. **Special bonds can be issued to support the development of specific areas, such as infrastructure construction, so as to reduce the demand for ordinary government bonds and control the scale of government bonds. 4.

Strengthen fiscal supervision. Strengthen financial supervision and control to prevent illegal borrowing and indiscriminate issuance of bonds by ** departments, so as to control the scale of national bonds. It should be noted that the size of government bonds should be commensurate with the country's economic strength and debt sustainability, and excessive issuance of government bonds should not lead to increased debt risks.

Summary. The impact of national bonds on the national economy is mainly achieved through two ways: first, the fiscal effect; The second is the liquidity effect.

The amount of treasury bonds to be issued will be constrained by factors such as the total amount of fiscal revenue, the total amount of fiscal expenditure, the amount of repayment of principal and interest on treasury bonds, and the amount of financial loans to banks. Establish a repayment mechanism for principal and interest; Moderate issuance of local ** bonds, etc.

The impact of national bonds on the national economy is mainly achieved through two ways: first, the fiscal effect; The second is the liquidity stool effect. The amount of treasury bonds to be issued will be constrained by factors such as the total amount of fiscal revenue, the total amount of fiscal expenditure, the amount of repayment of principal and interest on treasury bonds, and the amount of financial loans to banks. Build a jujube shed to establish a repayment mechanism for principal and interest; Moderate issuance of local ** bonds, etc. and mausoleums.

It is necessary to consider both fiscal principles and the needs of the central bank's open market operations. In controlling the scale of treasury bonds, it is necessary to consider the fiscal principle and the needs of the central bank's open market operations, and choose a scale and term structure that is in line with the needs of the central bank's open market operations. Treasury bonds, also known as state public bonds, are creditor-debtor relationships formed by the state on the basis of its credit and in accordance with the general principle of debt by raising funds from the society.

China can control the scale of the national debt through the following measures: First, strengthen financial supervision. Financial supervision is the premise and foundation for the issuance of treasury bonds, and only by strengthening financial supervision and control can we effectively control the scale of the national and mumu world bonds.

In this process, we can formulate relevant policies, clearly stipulate the conditions and limits for the issuance of treasury bonds, strictly supervise the issuance and use of treasury bonds, avoid indiscriminate issuance of treasury bonds and waste of treasury bond funds, and at the same time supervise and restrain the institutions that issue treasury bonds. Second, it is necessary to improve the situation of fiscal revenue and expenditure. Therefore, we should improve the fiscal revenue and expenditure situation and reduce the demand for treasury bond issuance by optimizing the structure of fiscal expenditure, strengthening tax collection and management, controlling debt inflation, and improving the efficiency of state-owned enterprises.

It can regulate the supply of market funds, and it is also the need of the state to raise funds for construction.

Treasury bonds have the basic function of making up for the fiscal deficit and raising funds for construction. In addition, the issuance and trading of treasury bonds helps to form the market benchmark interest rate, and the changes in their trading on the secondary market** can timely reflect the changes in the market's perception or future interest rate overdue.

Second, treasury bonds can also be used as a tool for short-term financing for institutional investors, and the credit risk of treasury bonds is low, so institutional investors can adjust the shortfall of short-term funds through repurchase transactions. The above is an introduction to the function of national bonds. It is important to understand that treasury bonds can be used as a financial tool, relative to the buyer.

The role of national debt for the state is divided into the following four types:

1. Raise military spending.

In times of war, military expenditures were enormous, and in the absence of other means of financing, they were raised through the issuance of war bonds. The issuance of war treasury bonds is a common method used by all countries in wartime, and it is also the first origin of treasury bonds.

2. Balance fiscal revenue and expenditure.

The issuance of additional currency is the most convenient option, but it is the least desirable, since the issuance of additional currency to cover the fiscal deficit will lead to severe inflation, which will have the most severe impact on the economy. In the case that it is difficult to raise taxes and it is not possible to increase the issuance of currency, it is still a feasible measure to make up for the fiscal deficit by issuing treasury bonds. **Through the issuance of bonds, the idle funds of units and individuals can be absorbed, and the country can tide over the period of financial difficulties.

3. Raise construction funds.

The state needs a large amount of medium and long-term funds to carry out the construction of infrastructure and public facilities, and through the issuance of medium- and long-term treasury bonds, a part of the short-term funds can be converted into medium- and long-term funds for the construction of large-scale national projects to promote economic development.

4. Issuance of borrowed treasury bonds.

In the peak period of debt repayment, in order to solve the problem of funds for debt repayment, the state issues loans and exchanges of national shirts and pants to repay the old debts that are due, "which can reduce and disperse the country's debt repayment burden."