It is the country that borrows money from the people with interest!
The reason why the state issues treasury bonds is mainly used to regulate currency circulation.
Generally speaking, the issuance of government bonds has two purposes. One is that the government raises funds for infrastructure construction to stimulate domestic demand. The other is the government's open market operation to adjust the amount of funds in the market. For western countries, the second point is more important. When there is too much money in the market, the government raises funds in the market by issuing government bonds to prevent inflation and adjust interest rates.
This is a comparison between China's issuance of national debt and other countries: First, the current issuance of national debt in China. (Direct issue, consignment issue, underwriting issue, tender auction issue. ) that is "what".
Second, the main bond issuance methods in the world.
III. Advantages and disadvantages of China and international distribution. That is, "What's the problem?"
Fourth, how to improve. That is, "solve the problem."
The national debt market is divided into two levels, one is the national debt issuance market, also known as the primary market. The second is the national debt circulation market, also known as the secondary market. The primary market is like a wholesale market, and the secondary market is like a retail market. Whether the primary market is smooth or not is very important for the issuance of national debt. Generally speaking, there are four ways to issue government bonds.
Since the reform and opening up, people have become richer and have more money left, so they want to invest, so there are stock traders, futures traders, stamp collectors, art collectors and so on. The investment methods are varied and endless. Among all kinds of investment methods, national debt can be said to stand out and be favored by investors. In the eyes of ordinary people, the national debt is issued by the state. If the state has money, the government will never borrow it without paying it back. Investing in treasury bonds is not only less risky, but also more profitable than bank savings. Therefore, national debt is called "Phnom Penh bond".
Lending between private individuals is a relatively simple procedure. Often find a notary or guarantor, and the borrower and the lender will set up a written document, which will be signed and sealed by one hand and delivered by the other. National debt is much more complicated, and it can only flow into the hands of investors through the national debt market. The national debt market is divided into two levels, one is the national debt issuance market, also known as the primary market. Through this market, the central government sells newly issued government bonds to investors with relatively abundant funds. Corresponding to the national debt issuance market, it is the national debt circulation market, also known as the secondary market. For example, the primary market is like a wholesale market and the secondary market is like a retail market. In the secondary market, those investors in the primary market will transfer and sell their national debt to more small and medium investors. Whether the primary market is smooth or not is very important for the issuance of national debt.
In China, the way of issuing national debt has changed several times. In 1980s, government bonds were issued by apportionment in the form of administrative distribution. In the early 1990s, it was changed to underwriting, which was mainly used for non-negotiable certificate-based government bonds. Up to now, it has evolved into four distribution modes: direct distribution, consignment distribution, exclusive distribution and bidding auction distribution. Direct issuance refers to the direct sale of government bonds to the whole country by the Ministry of Finance. This kind of issuance includes three situations. First, financial departments or institutions at all levels sell treasury bonds, and units and individuals subscribe for them themselves. The second situation, that is, the allocation method in the 1980 s, is compulsory subscription. The third is the so-called "private placement orientation", in which the Ministry of Finance issues treasury bonds directly to specific investors. Such as banks, insurance companies and pension funds. Special treasury bonds and special treasury bonds will be issued. Consignment issuance is just the opposite of direct issuance, and the Ministry of Finance entrusts an agent to be responsible for the sale of government bonds. China used this method in the late 1980s and early 1990s. As for underwriting, as the name implies, large institutional investors underwrite government bonds first, and then they can make a profit. If there is a problem with sales, then the unsold part can only be digested by itself. Since the middle and late 1990s, underwriting has become the main way to issue national debt in China. In fact, not only our country, but also many countries in the world adopt this method.
The fourth way to issue national debt is bidding and auction. In this way, the subscription price or yield of national debt is not determined by the government itself, but by the auction site bidding. There are two specific bidding methods, competitive bidding and non-competitive bidding. Since the name of the former is competitive, it naturally implies exclusivity. Under the condition of competitive bidding, the bidder submits the subscription price and quantity to the tenderer, and the tenderer opens the bid accordingly. The basis of winning the bid is the issue price. The higher the bidder's subscription price, the greater the benefit to the tenderer, so the highest bidder wins. Non-competitive bidding, at first glance, is similar to competitive bidding, but in fact it is very different. They are similar because non-competitive bidding follows competitive bidding; To say that they are different is to say that the results are different. Competitive bidding is implemented, and only the investors with the highest bid get the right to issue national debt. Taking non-competitive bidding is similar to eating a pot of rice, and everyone who participates in bidding has a share.
There are two representative bidding rules for issuing treasury bonds through non-competitive bidding and auction: Dutch bidding and American bidding. The so-called "Dutch-style" bidding means that the winning bid price is a single price, usually the lowest price quoted by the bidder. According to this price, all investors get their share in the issuance of government bonds. In the "American-style" bidding, the winning bid price is the price quoted by the bidder. For example, in a tender, there are three bidders, A, B and C, and their bidding prices are 85 yuan, 80 yuan and 75 yuan respectively. Then, according to the "Dutch style" bidding, the winning bid price is 75 yuan. If "American" bidding is adopted, the winning bids of A, B and C are 85 yuan, 80 yuan and 75 yuan respectively. Since 1996, China has introduced the competitive mechanism into the issuance of government bonds, and since 2003, the Ministry of Finance has made major adjustments to the bidding rules for the issuance of government bonds, that is, on the basis of the original single "Dutch-style" bidding, an "American-style" bidding method has been added, and three bidding targets have been determined, namely interest rate, spread and price.
From the moment the national debt is issued, there are rules to follow. However, in different periods, people have different understandings of the rules. With the deepening of the practice of issuing national debt in various countries, many old principles are no longer applicable. However, some principles have been repeatedly tested and widely recognized by people. Take the principle of prosperous issuance as an example, it refers to the issuance of national debt, which should ensure economic prosperity, that is, economic stability and development, according to social and economic conditions. This requires the issuer of national debt to assess the situation and make a choice. For example, when the economy is shrinking and needs government investment to stimulate economic growth, short-term national debt will go into battle and take the lead. The reason for this is not difficult to understand: short-term treasury bonds are highly liquid, which can raise more funds in a relatively short period of time, just like piles of fires lit in winter, and contribute to the rapid economic recovery. On the contrary, when the economy is overheated, long-term national debt will come forward and its proportion will increase, which will undoubtedly weaken the liquidity of money. For a "feverish" economy, it is like a cool drink in summer to quench your thirst and soothe your nerves.
As the saying goes, borrowing is easy to pay back, and it is not difficult to borrow again. When people borrow money, they always weigh it clearly in advance and decide to pay it back before speaking. The state borrows money from the people, and so does the issuance of government bonds. In the management of national debt scale, most developed countries adopt the management of national debt balance limit, that is, the Congress is responsible for approving the national debt balance limit for a long period of time. As long as it does not exceed the quota, Congress will not interfere with the issuance of national debt, and the government can act freely to determine the issuance scale of each year within the quota. Of course, if the balance of national debt exceeds the limit, then Congress will intervene. This is very much like the style of a patrolman. If you obey the law on the road, you can hardly feel his existence. But if you violate traffic regulations, or go retrograde, or run a red light, the patrolman will appear in front of you unnoticed and punish you.
China implements the annual quota management system for the issuance scale of national debt, that is, the issuance plan of national debt for the next year is usually prepared in the fourth quarter of the previous year. The calculation of national budget revenue and expenditure is the main basis for the preparation of national debt issuance plan. This plan will be submitted to the State Council as part of the national budget, and the State Council will be submitted to the National People's Congress for deliberation in March next year. Once the national debt issuance plan is passed, it has the same legal effect as the legal text. If the international and domestic economic situation changes during the year and it is necessary to increase or decrease the national debt, the government has no right to do it at will. It must be reported to the NPC Standing Committee like amending laws and regulations, and it can only be implemented after deliberation and approval.
Since the reform and opening up, China's national debt issuance has experienced the development process of administrative distribution in the 1980s, underwriting in the early 1990s, and the coexistence of directional sale, underwriting and tendering. The general trend is to move towards low-cost and high-efficiency distribution, and gradually move towards standardization and marketization.
(1) targeted sales. Directional issuance is a way to issue treasury bonds to specific institutions such as pension funds, unemployment insurance funds and financial institutions, which is mainly used for national key construction bonds, financial bonds and special treasury bonds.
(2) underwriting. Underwriting underwriting started at 199 1, which is mainly used for non-negotiable certificate-based government bonds. It is an underwriting syndicate composed of national debt underwriting institutions all over the country. Underwriting conditions, underwriting fees and underwriters' obligations are all determined by signing an underwriting agreement with the Ministry of Finance, so it is a distribution method with certain market factors.
(3) Tender issuance. Tender issuance refers to the determination of underwriters and issuance conditions of national debt through tender. According to different issuers, bidding can be divided into three forms: payment period bidding, price bidding and yield bidding:
(1) Payment period bidding. Bidding for the payer refers to obtaining the right of winning the bid according to the order in which the underwriting institution pays to the Ministry of Finance when the coupon rate and the issue price of the national debt have been determined, until the scheduled issue amount is reached.
(2) price bidding. Price bidding is mainly used for the issuance of discounted government bonds, and the bid is won according to the order of the bidder's quoted purchase price from high to low until the scheduled issuance quota is reached. If the bid winning rule is "Dutch style", the winning underwriting institution will subscribe for the amount of the winning national debt at the same price (the lowest price among all the winning bids); If the winning bid rule is "American", then the underwriting institutions subscribe for the winning bid amount with their respective bids.
For example, when issuing discounted treasury bonds with a face value of 100 yuan and a total amount of 20 billion yuan by tender, if there are three bidders, namely, A, B and C, and their bidding and application amounts are shown in Table 5- 1, the winning bids of A, B and C are 9 billion yuan, 6 billion yuan and 5 billion yuan respectively.
As can be seen from the above, "Dutch-style" bidding is characterized by "unit price", while "American-style" bidding is characterized by "multiple prices". At present, China's short-term discounted government bonds are mainly issued by "Dutch-style" price bidding.
(3) Yield bidding. Yield bidding is mainly used for the issuance of interest-bearing government bonds. It can also be divided into "Dutch" bidding and "American" bidding, and the principle is similar to the above-mentioned price bidding.
The introduction of market competition mechanism in the process of issuing treasury bonds by tender can reflect the underwriter's expectation of interest rate trend and the supply and demand of social funds, and promote the marketization process of treasury bond issuance interest rate and the whole interest rate system. In addition, tender issuance is also conducive to shortening the issuance time and promoting the convergence of the primary and secondary markets of national debt. Based on these advantages, tender issuance has become the main direction of the reform of China's national debt issuance system.