Global equities and bonds may

China corporate bond market prediction

When China released its 12th Five-Year Plan in March 2011, one sentence raised more than a few eyebrows: “Government at all levels should create a sound policy, system and legal environment, break down market segmentation and industry monopoly, stimulate initiative and creativity of market players, steer the behavior of market players towards national strategic objectives.”

China’s “industry monopolies, ” lest we forget, are state-owned enterprises. Why on earth would the government want to break them up?

The answer lies in some of the plan’s broader goals, like boosting consumption and enabling the service sector to be a larger driver of economic growth. Success on that front likely requires a robust private sector, abounding with competitive small businesses — something China’s struggled to foster.

Small firms can’t thrive without cheap, easy access to credit, but the large state-run banks — which dominate China’s banking system –aren’t keen to lend to them. They prefer transacting with state-run companies, which are a far less risky investment, thanks to their implicit government guarantee.

Untapped Economic Potential

Hence, many small-business owners and entrepreneurs are forced to seek financing in the shadow banking system, where high borrowing costs and unscrupulous tactics reign. Some companies do all right, securing expensive loans and running a productive operation, albeit with slimmer margins and lower growth potential than they’d otherwise have — and the constant threat of loan sharks. But many firms aren’t so lucky, and many more likely don’t even try. Thus, there’s a ton of untapped economic potential.

Policymakers have tried to fix this. Last October, Premier Wen Jiabao directed banks to increase and broaden small businesses’ credit access, scrap unreasonable charges and waive stamp taxes on small-business loans, and — for good measure — eased small firms’ value-added tax burden. But none of these measures were concrete, and banks largely continued shutting out small firms.

A longer-term solution took shape in March, when officials approved a plan to deregulate the financial industry in the coastal city of Wenzhou. Citizens can set up banks, invest abroad, trade unlisted equities and develop different types of bonds. Officials’ goal is to fully legitimize the shadow banking system and wipe out the darker practices in its underbelly.

If it works as intended, the market’s invisible hand would bless the lenders who run an ethical, useful institution and wipe out the loan sharks: If lending is free and easy, miscreants become redundant.

The Wenzhou reforms are a blueprint for nationwide financial deregulation, but it could take years for officials to gauge their viability, so this isn’t a near-term solution for credit-starved small enterprises. Thus, officials are taking unprecedented steps to revolutionize banking in the here and now.

Self-Regulatory Organizations; ICE Clear Europe Limited; Order Granting ..  — Insurance News Net
ICE Clear Europe states that the changes to the Risk Policy amend the calculation of CDS initial margin requirements to comply with margin requirements under EMIR Article 41 and Article 24 of the implementing Regulatory Technical Standards. /5/ ICE ..

VMAX USA VMAX857 AGM Battery 35AH Marine RV Deep Cycle HI Performance Batteries ideal for boats and 18-35lb minn kota, minnkota, cobra, sevylor and other trolling motor (12V 35AH, GROUP U1)
Sports (VMAX USA)
  • 7.7 *5 *6.1 H Heavy Duty 12V AGM SLA DEEP CYCLE BATTERY with Float Service Life span of 5 to 8 years.
  • Also avilable as a battery kit:http://.amazon.com/gp/product/B00HOUCLWE
  • Heavy Duty Grids: VMAX heavy duty lead tin alloys provide an extra margin of performance and service life in either float or cyclic applications, even after repeated...
  • Maintenance Free Operation: There is no need to check specific gravity of the electrolyte or add water to VMAX tanks during float service life. In fact, there is...
  • RECOMMENDED CHARGER: VMAX BC1204 12V 3.3Amp Smart Charger/Maintainer (http://.amazon.com/gp/product/B00F0XFE0I)
VMAX USA Vmaxtanks MR107 85AH Marine AGM SLA Deep Cycle Battery ideal for boats and 40b-55lb thrust Minn Kota, Newport Vessels, Cobra, Sevylor and other trolling motors. BCI Group 24
Sports (VMAX USA)
  • 12 Volt Marine SLA AGM Heavy Duty Battery 10.2 L*6.6 W*8.3 H Heavy Duty 12V AGM DEEP CYCLE Group 24 BATTERY with Float Service Life span of 8 to 10 years.
  • Electrolyte Suspension system VMAX tanks utilize an electrolyte suspension system consisting AGM (Absorbed Glass Matt) of a high porosity that totally absorb and...
  • Heavy Duty Grids: VMAX heavy duty lead tin alloys provide an extra margin of performance and service life in either float or cyclic applications, even after repeated...
  • Maintenance Free Operation: There is no need to check specific gravity of the electrolyte or add water to VMAX tanks during float service life. In fact, there is...
  • RECOMMENDED CHARGER: VMAX BC1215 12V 15Amp Smart 7-Stage Charger/Maintainer (http://.amazon.com/gp/product/B00J1UIB2Y)

Popular Q&A

avatar
How do you find the market value of a corporate bond?

The best way is to find a value a similar bond

Related Posts