that is, the state borrows money from the people with interest!
the reason why the state issues treasury bonds is mainly used to regulate the currency circulation.
Generally speaking, the issuance of government bonds has two purposes. One is for the government to raise funds for infrastructure construction and stimulate domestic demand. The other is for the government to open the market operation to regulate the amount of funds in the market. For western countries, the second meaning is even greater. When there is too much money in the market, the government collects the funds in the market by issuing government bonds to prevent inflation and adjust interest rates.
This is for China to issue government bonds and other countries. (Direct issue, consignment issue, underwriting issue, tender auction issue. ) that is, "what".
second, the major international bond issuance methods.
third, compare the advantages and disadvantages of China's and international distribution methods. That is, "what is the problem?"
fourth, how to improve. That is, "solving problems."
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 national debt.
Since the reform and opening up, people have become richer and richer, and when they have more money left, they will want to invest, so there are stock traders, futures traders, stamp collectors, art collectors and so on, and the investment methods are various. 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, and the state is rich in money, so 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 known as "Phnom Penh bond".
the procedure for borrowing money between individuals is relatively simple. Often find a notary or guarantor, and the borrower and the lender will set up a written document, sign and seal it with one hand, and deliver the loan with the other hand. National debt is much more complicated, and it must pass through the national debt market before it can flow into the hands of investors. 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 treasury bonds to investors with relatively strong 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-sized investors. Whether the primary market is smooth or not is very important for the issuance of national debt.
in our country, the issuance method of national debt has changed several times. In the 198s, government bonds were issued by apportioning in the form of administrative distribution. In the early 199s, it was changed to underwriting, which was mainly used for non-negotiable certificate-based government bonds. Up to now, it has evolved into the coexistence of four distribution methods, namely, direct distribution, consignment distribution, underwriting distribution and tender auction distribution. Direct issuance means that the Ministry of Finance directly sells government bonds to the whole country. This way of issuance, * * * includes three situations. First, financial departments at all levels or agencies sell government bonds, and units and individuals subscribe by themselves. The second situation, that is, the apportionment method in the 198 s, is a mandatory subscription. The third is the so-called "private orientation", in which the Ministry of Finance issues treasury bonds directly to specific investors. For example, banks, insurance companies, pension funds, etc., will issue special treasury bonds and special treasury bonds. Consignment issuance is just the opposite of direct issuance, and the Ministry of Finance entrusts the agent to be responsible for the sale of national debt. China used this method in the late 198s and early 199s. As for underwriting, as the name implies, it means that large institutional investors underwrite government bonds first, and only after underwriting can they 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 199s, 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 treasury bonds is through bidding and auction. In this way, the subscription price or yield of national debt is not determined by the government itself, but is determined by bidding at the auction site. Here, there are two specific ways of bidding, competitive bidding and non-competitive bidding. Since the name of the former is competitive, it naturally implies exclusivity. Under competitive bidding conditions, the bidder submits the subscription price and quantity to the tenderer, and the tenderer opens the bid accordingly. The basis for 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 means that the results are different. Competitive bidding is implemented, and only the investor with the highest bid gets 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-style" bidding and "American-style" bidding. The so-called "Dutch-style" bidding means that the bid-winning price is a single price, which is usually the lowest price quoted by the bidder. According to this price, all investors get their own shares in the issuance of government bonds. In the "American-style" bidding, the bid-winning price is the price quoted by the bidders. For example, in a tender, there are three bidders A, B and C, and their bidding prices are 85 yuan, 8 yuan and 75 yuan respectively. Then, according to the "Dutch-style" tender, the winning bid price is 75 yuan. If "American-style" bidding is adopted, the winning bids of A, B and C are 85 yuan, 8 yuan and 75 yuan respectively. Since 1996, China has introduced the competitive mechanism into the issuance of treasury bonds, and since 23, the Ministry of Finance has made major adjustments to the bidding rules for the issuance of treasury bonds, that is, on the basis of the original single "Dutch-style" bidding, an "American-style" bidding method has been added, and the bidding targets have been determined as three types, followed by interest rate, spread and price.
from the moment the national debt is issued, it has 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 the prosperity of the economy, that is, the stability and development of the economy, according to the social and economic situation. This requires the issuer of national debt to judge the situation and make a choice. For example, when the economy is shrinking and depressed and government investment is needed 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 short period of time, just like piles of fires lit in winter, which will help the economy to pick up quickly. 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 "fever" economy, it is just like a cool drink in summer to quench your thirst and calm your nerves.
as the saying goes, it is easy to borrow and pay back, but it is not difficult to borrow again. When people borrow money, they always weigh it clearly in advance and are sure to repay it before they can speak. The same is true for countries to borrow money from the people and issue government bonds. In the management of the scale of national debt, most developed countries adopt the management of the balance limit of national debt, which means that Congress is responsible for examining and approving the balance limit of national debt for a long period of time. As long as it does not exceed the limit, Congress will not interfere in the issuance of national debt, and the government can act freely and determine the issuance scale of each year within the limit. Of course, if the balance of the national debt dares to cross the line and exceed 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.
in China, the annual quota management system is implemented for the scale of national debt issuance, that is, the national debt issuance plan for the next year is usually prepared in the fourth quarter of the previous year. The calculation of the state budget revenue and expenditure is the main basis for the preparation of the national debt issuance plan. This plan will be submitted to the State Council as a part of the national budget, and the State Council will submit it to the National People's Congress for deliberation in March next year. Once passed, the national debt issuance plan 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 reduce the national debt, the government has no right to do it at will. It must report it to the National People's Congress Standing Committee (NPCSC) as it does to amend laws and regulations, and it can only be implemented after its deliberation and approval.
since the reform and opening up, China's national debt issuance has gone through the administrative distribution in 198s, underwriting by underwriting in the early 199s, and the development process of directional sale, underwriting by underwriting by underwriting and tender issuance at present. The general change trend is to keep moving towards low-cost and high-efficiency issuance, and gradually move towards standardization and marketization.
(1) targeted sale. Directional offering 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, special treasury bonds and other varieties.
(2) underwriting. Underwriting underwriting began in 1991, and it is mainly used for non-negotiable certificate-based government bonds. It is an underwriting syndicate composed of government bond underwriting institutions from all over the country. The underwriting conditions, underwriting fees and underwriters' obligations are determined by signing an underwriting agreement with the Ministry of Finance, so it is an issuance method with certain market factors.
(3) issue by tender. Tender issuance refers to determining the underwriter and issuance conditions of national debt through tender. According to the different issuers, bidding can be divided into three forms: payment period bidding, price bidding and yield bidding:
① payment period bidding. The tender for the payer refers to obtaining the right to win the bid according to the order of the underwriting institution's payment to the Ministry of Finance under the condition that the coupon rate and the issue price of the national debt have been determined, until the scheduled issue amount is met.
② price bidding. Price bidding is mainly used for the issuance of discounted treasury 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 amount is met. If the bid winning rule is "Dutch style", then the winning underwriting institutions will subscribe for the amount of the winning national debt at the same price (the lowest price among all the winning bids); If the bid winning rule is "American style", then the underwriting institutions subscribe for the bid winning amount with their respective bids.
For example, when discounted government bonds with a face value of 1 yuan and a total amount of 2 billion yuan are issued by tender, if there are three bidders, A, B and C, and their bids and application amounts are shown in Table 5-1, then the winning bids of A, B and C are 9 billion yuan, 6 billion yuan and 5 billion yuan respectively, and the winning bids are all 75 yuan under the "Dutch" bidding rules.
from the above, it can be seen that "Dutch-style" bidding is characterized by "single 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 two forms: "Dutch-style" bidding and "American-style" bidding, and the principle is similar to the above-mentioned price bidding.
The tender issuance introduces the market competition mechanism into the issuance process of national debt, which can reflect the underwriter's expectation of interest rate trend and the supply and demand of social funds, and promote the marketization process of national debt issuance interest rate and the whole interest rate system. In addition, tender issuance is also conducive to shortening the issuance time and promoting the connection between the primary and secondary markets of national debt. Based on these advantages, tender issuance has become the main direction of China's national debt issuance system reform.