In China, bond funds mainly invest in government bonds (issued by the government), financial bonds (issued by financial institutions) and corporate bonds (issued by industrial and commercial enterprises). Usually, bonds provide investors with a fixed return and repay the principal at maturity, and the risk is lower than that of stocks. Therefore, compared with stock funds, bond funds have the characteristics of stable income and low risk.

National debt, also known as national debt, is a creditor-debtor relationship formed by the state raising funds from the society on the basis of its credit and according to the general principle of bonds. It is a debt certificate issued by the central government to investors, promising to pay interest and repay the principal within a certain period of time. Because the issuer of national debt is the country, it has the highest credit and is recognized as the safest investment tool.

China's national debt refers to the national debt issued by the Ministry of Finance on behalf of the central government. Guaranteed by the national financial reputation, the credibility is very high. It has always been called "Phnom Penh bond", and cautious investors like to invest in government bonds. There are three kinds of bonds: voucher bonds, bearer bonds and book-entry bonds.

main feature

National debt is a special form of debt, which has the following characteristics compared with the general creditor-debtor relationship:

From the perspective of the subject of legal relationship

The creditors of national debt can be citizens, legal persons or other organizations at home and abroad, or the government and international financial organizations of a certain country or region, while the debtors can only be countries.

Judging from the nature of legal relationship

The occurrence, change and elimination of the legal relationship of national debt mostly reflect the unilateral will of the state. Although the legal relationship of national debt is equal to other financial legal relationships, it shows a certain subordinate relationship compared with the general creditor-debtor relationship, which is more obvious in the legal relationship of domestic debt.

From the realization of legal relationship

National debt is the creditor-debtor relationship with the highest credit rating and the best security.

From the debtor's point of view

National debt is voluntary, paid and flexible.

From the creditor's point of view

National debt has the characteristics of security, profitability and liquidity.

There are three kinds of national bonds in China: voucher bonds, bearer from bond bonds and book-entry bonds.