Ye Tan: The Bond Market Will Play A Leading Role.

In November 3rd, the Treasury issued a key Treasury yield curve.

This is a landmark event, which shows that China's financial reform has entered the deep water area.

The Treasury issued the Treasury bond yield curve for two main purposes: first, matching the interest rate marketization, setting the minimum risk return benchmark for the financial market; second, matching the RMB internationalization, so that the holders of RMB will have the largest investment in Renminbi in the future.

We now use bonds as an example.

There is a certain deviation in the way of supplementary financing.

Considering the market financing demand and credit level, China

It is more important than stock market.

By the end of June 2014, the total market value of the US stock market was $24 trillion, and the bond market was about $45 trillion and the bond market was 1.8 times the size of the stock market, public data showed.

Many people complain that China's safe has invested in US Treasury bonds, which is ridiculous for Americans to carry sedan chairs.

The largest, safest and easiest way to invest is to invest in the bond market, especially in the high level bond market. The US bond market is the kind of market.

As of August 1, 2014, the total market capitalization of the Shanghai and Shenzhen stock markets plus the national stock pfer system (new three boards) is about 26 trillion yuan, while the total stock market share of the same period is two yuan and the total stock market is 32 trillion and 900 billion yuan. The stock market is 1.26 times the market value of the stock market. This figure is the highest proportion of the Chinese bond market in the capital market.

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As far as breadth and depth are concerned, the stock market and the bond market have drawn a distance, and the bond market has shown strong strength.

According to the standard & Poor's June data, China's corporate debt is about 1 trillion and 500 billion US dollars, half the size of the national debt.

The market size of Chinese corporate bonds has surpassed the United States as the largest in the world. It may occupy 1/3 of global corporate debt demand in the next 5 years.

China's corporate bond yields are higher than those of the European and American markets, ranging from high level sovereign debt to junk debt.

Because China is still in the peak period of infrastructure construction, there will be a broad market for issuing railway debt and urban debt in the global market.

There are derivatives in the stock market, but the credit risk is huge, the financing is lively and the margin is insufficient.

The derivatives market of the bond market is much more than that of the stock market. The well-known subprime mortgage crisis in the United States is in fact a derivative product of the bond market.

The legs of China's bond market are still tied up.

Credit rating is nominal, and more than one agency has pointed out that most Rating firm are at the highest level, like the golden lace on the black cloud of the bond market.

Once the bond market is down and the market is frozen, bonds are often held as time deposits.

The development of China's bond market is at an early stage. Whether it likes it or not, the bond market of China's financial market will play a leading role in the future.