Opening-up Domestic Bond Market in the Support of China’s Supply-Side Reform

Abstract

This paper studies the opening-up of domestic bond market in the support of China’s supply-side reform by examining the five core elements about the reform, namely overcapacity trimming, inventory de-stocking, financial deleveraging, cost reduction, and improvement of weak links in the economy. By examining the relationship between bond market opening-up and each element of the reform, the paper comes to the conclusion that the opening-up of domestic bond market is supportive to China’s supply-side reform.