Download Free Electronic Document
| Format | File Size | Notes |
|---|---|---|
| PDF file | 0.1 MB | Use Adobe Acrobat Reader version 10 or higher for the best experience. |
A well-regulated bond market could help the Chinese government fund itself, help fund companies that could create the jobs China so desperately needs, and enable companies, pension funds, insurance funds, and social security funds to match their assets and liabilities properly. This would help stabilize China both financially and socially. Because China now has significant government debt, combined with a history of not letting that debt get out of control, it has the potential to develop a sophisticated government bond market that could become the foundation both for a large Chinese corporate bond market and, when the currency is fully convertible, for a regional bond market. The Asian crisis teaches us not only that Asian countries need bond markets to stabilize their finances but also that bond markets will be unstable without painful reforms to ensure rigorous accounting, transparency, strong bankruptcy and foreclosure laws, an effective legal system, and bank accountability.
This research in the public interest was prepared for the Center for Asia-Pacific Policy, a division of the RAND Corporation.
This report is part of the RAND Corporation Occasional paper series. RAND occasional papers may include an informed perspective on a timely policy issue, a discussion of new research methodologies, essays, a paper presented at a conference, or a summary of work in progress. All RAND occasional papers undergo rigorous peer review to help ensure that they meet high standards for research quality and objectivity.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.