{"product_id":"repo-market-and-structure-of-short-term-interest-rates-in-china-von-francis-mulenga-muma","title":"Repo Market and Structure of Short Term Interest Rates in China","description":"\u003cp\u003eStudienarbeit aus dem Jahr 2011 im Fachbereich BWL - Bank, Börse, Versicherung, Xiamen University, Sprache: Deutsch, Abstract: Money market refers to the market where financial institutions make transactions of\u003c\/p\u003e\u003cp\u003eshort-term financial instruments for short-term financing and liquidity management.\u003c\/p\u003e\u003cp\u003eChinäs money market is mainly made up of interbank funding market and bond\u003c\/p\u003e\u003cp\u003erepurchase agreement market commonly referred to as repo market.\u003c\/p\u003e\u003cp\u003eSome scholars argue that Chinäs financial liberalization remains incomplete as the\u003c\/p\u003e\u003cp\u003ebehaviour of short-term market-determined interest rates is influenced by regulated rates.\u003c\/p\u003e\u003cp\u003eThis paper argues that to have integrity of the market China should further liberalize its retail\u003c\/p\u003e\u003cp\u003einterest rates to allow all interest rates to better reflect liquidity conditions and the scarcity of\u003c\/p\u003e\u003cp\u003ecapital.\u003c\/p\u003e\u003cp\u003eAt present, the relevant research of the term structure of interest rates of China is\u003c\/p\u003e\u003cp\u003emostly directed against a certain specific market or a certain specific method, lacking market\u003c\/p\u003e\u003cp\u003eintegrality. For constructing a systemic, scientific term structure of interest rate of China,\u003c\/p\u003e\u003cp\u003erespective term structure of interest rate is deduced from the treasury bond market, bank\u003c\/p\u003e\u003cp\u003edeposit market, inter-bank borrowing market, bank repo market, and RMB interest rate swap\u003c\/p\u003e\u003cp\u003emarket. And then according to different weights, a synthesized term structure of interest rate\u003c\/p\u003e\u003cp\u003eof China is constructed out. Finally, empirical research is carried on by use of this method.\u003c\/p\u003e\u003cp\u003eEmpirical results show that the method is better than the traditional methods, and the\u003c\/p\u003e\u003cp\u003esynthesized term structure curve of interest rate by the method is between various kinds of\u003c\/p\u003e\u003cp\u003eterm structure curves by the traditional methods, reflecting the situation and information of\u003c\/p\u003e\u003cp\u003eeach market on the whole.\u003c\/p\u003e\u003cp\u003eSince the market-oriented economic reform in 1978, China has entered into a stage of\u003c\/p\u003e\u003cp\u003efinancial deregulation and liberalization. With the growth of the national economy and\u003c\/p\u003e\u003cp\u003echange of national income structure, Chinäs finance has increased rapidly, which brought\u003c\/p\u003e\u003cp\u003egreat changes in the financial structure. In 1978, broad money (M2) balance was near\u003c\/p\u003e\u003cp\u003eRMB150 billion yuan. By the end of 2001, broad money balance was up to RMB16000\u003c\/p\u003e\u003cp\u003ebillion yuan, an increase of over 100 times in the past twenty years.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783656432982\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783656432982","offer_id":39446372778077,"sku":"9783656432982","price":27.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/ab8f4bc3-c356-4a34-961f-5157f8c9d977.jpg?v=1778046730","url":"https:\/\/shop.autorenwelt.de\/products\/repo-market-and-structure-of-short-term-interest-rates-in-china-von-francis-mulenga-muma","provider":"Autorenwelt Shop","version":"1.0","type":"link"}