Economist's View: FRBSF: Prospects for China's Corporate Bond Market

リンク: Economist's View: FRBSF: Prospects for China's Corporate Bond Market.

FRBSF: Prospects for China's Corporate Bond Market Financial markets in China are inefficient and underdeveloped. Because of this, China is not able to achieve an efficient allocation of capital. However, since many of the problems originate in the banking sector, firms might be able to overcome some of the problems by raising funds themselves through issuing corporate bonds. However, this Economic Letter from Galina Hale of the San Francisco Fed finds that "The bond market should not be viewed as a potential substitute for bank financing. Rather, improvement in the banking system will be needed before China's corporate bond market can develop":