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 extremely high. It has always been called "Phnom Penh bond", and cautious investors like to invest in government bonds. There are three kinds of vouchers, physical vouchers and accounting vouchers.
Specifically, it refers to the national debt formed by the government issuing bonds at home and abroad or borrowing from foreign governments and banks. It is an important part of the whole social debt. National debt is a special financial category. It is first and foremost a financial income. In fact, the state issues bonds or loans to raise funds, which has three functions: making up the fiscal deficit, raising construction funds and regulating the economy.
The issuance of national debt should follow the credit principle of borrowing and returning. When a bond or loan matures, it is necessary not only to repay the principal, but also to pay certain interest. The national debt is subscribed voluntarily. Except for a few compulsory national debt, whether to subscribe and how much to subscribe is entirely up to people.
According to different standards, national debt can be divided into different types: according to the form of state borrowing, national debt can be divided into state borrowing and bond issuance. National debt can be divided into long-term national debt, short-term national debt and medium-term national debt. The so-called long-term and short-term are comparative, and there is no absolute standard. Most countries in the world generally call short-term treasury bonds with a maturity of less than one year, long-term treasury bonds with a maturity of more than 10 years, and medium-term treasury bonds with a maturity between the two as short-term treasury bonds. According to the nature of financing and issuance, national debt can be divided into compulsory national debt and unpaid national debt.
National debt can be divided into domestic debt and foreign debt according to the region where it is raised and issued. The so-called domestic debt refers to the loans and bonds issued by the state at home. The so-called foreign debt refers to the country's borrowing from other governments, banks and international financial organizations. According to the liquidity of bonds, national debt can be divided into marketable national debt and unsold national debt. State loans are non-transferable, only bonds can be sold or not.
China's national debt is called treasury bill, which refers to the national debt issued by the Ministry of Finance on behalf of the central government and guaranteed by the national financial reputation. Compared with other bonds, its credibility is very high, and it is generally a bond that stable investors like to invest in. There are three kinds of vouchers, physical vouchers and accounting vouchers.
national debt
National debt is issued by the government, which guarantees the repayment of principal and interest, and has low risk. It is called "Phnom Penh bond", which has the characteristics of low cost, stronger liquidity and higher credibility. Being short in the national debt bipolar market is only the difference between the national debt interest rate and the market interest rate, and the fluctuation range is very small.
Types of national debt
There are many kinds of national debt, which can be divided into three types according to the form of national debt, namely: bearer (physical) national debt, voucher national debt and book-entry national debt. Bearer bonds are relatively rare, and the latter two are the main forms at present.
Bearer (physical) bonds
Bearer from bond is a kind of bond with no creditor's name or company name on its face, which usually appears in the form of physical bond, also known as physical bond or national debt.
Bearer from bond is a national debt with the longest issuing history in China. Since the founding of the People's Republic of China, the national debt issued in the 1950s and after 198 1 is mainly bearer from bond.
At the time of issuance, it is sold to the public through bank savings outlets, treasury bond service departments of financial departments and business outlets of treasury bond institutions. Investors can also use securities accounts to entrust securities institutions to buy on the stock exchange floor.
The cash payment in bearer securities is handled by banks, postal savings outlets and financial bond intermediaries; Or carry out on-site exchange at the trading place.
The general characteristics of bearer from bond are: anonymity, no loss reporting and listing. Because it is anonymous, it does not report the loss, and its security is not as good as that of voucher and book-entry treasury bills, but the purchase procedure is simple. Because it can be listed and transferred, it has strong liquidity. The listing transfer price depends on the supply and demand situation in the secondary market. When the market factors change, its price will fluctuate greatly, so it has the opportunity to obtain greater profits, but it is also accompanied by certain risks. Generally speaking, bearer from bond is more suitable for financial institutions and buyers with strong investment awareness.
(2) Voucher-type national debt
Voucher-type national debt refers to the national debt issued by the state by filling in the "treasury receipt voucher" instead of printing physical coupons. China began to issue voucher-type government bonds from 1994. Certificated government bonds are similar to bank time deposit certificates, and the interest rate is usually higher than that of bank deposits in the same period. They are similar to and superior to savings, and are often called "savings-type national debt", which is an ideal investment method for individual investors with the purpose of saving.
Voucher bonds are issued to the public through the savings outlets of banks and the treasury bond service department of the financial department, mainly for ordinary people. Investors can register and report the loss of interest from the date of purchase, but they cannot be listed and circulated.
If investors need to realize the voucher-type government bonds after purchasing them, they can redeem them in advance at the original purchase outlets. When redeeming in advance, in addition to repaying the principal, interest will be paid according to the actual holding days and the corresponding interest rate grade, and the handling agency will charge a handling fee of two thousandths of the redemption principal. For the voucher-type government bonds redeemed in advance, the handling outlets can also sell them twice.
Compared with savings, the main characteristics of voucher-type national debt are safety, convenience and moderate income. Specifically: 1. There are many sales outlets of voucher-type treasury bonds, which are convenient to purchase and redeem and simple in procedures; 2. You can report the loss in real name and keep it safe; 3. The interest rate is higher than the bank deposit rate of the same period 1-2 percentage points (but lower than bearer and book-entry treasury bonds), and the interest is calculated progressively according to the holding time when redeeming in advance; 4. Although the voucher-type treasury bonds cannot be listed and traded, they can be redeemed in advance, which is flexible and the location is nearby. If investors have special needs, they can exchange cash at the original point of purchase at any time; 5. The interest risk is small, and the interest is calculated in advance according to the holding period and the interest rate of the corresponding grade. The interest rates of all grades are higher than or equal to the bank deposit rates for the same period, so there is no risk that time savings deposits can only be withdrawn in advance and bear interest on demand; 6. There is no market risk, the certificate-based government bonds cannot be listed, and the price (principal and interest) at the time of early redemption does not change with the change of market interest rate, which can avoid market price risk.
(3) Book-entry treasury bonds
Book-entry treasury bonds, also known as paperless treasury bonds, refer to treasury bonds held by investors registered in securities accounts, and investors only obtain receipts or statements to confirm their ownership.
China introduced book-entry treasury bonds from 1994. Book-entry treasury bonds are characterized by paperless bonds. Investors do not get paper coupons or vouchers when they buy them, but record them in their own bond accounts. Its general characteristics are: 1. Book-entry treasury bonds can be registered to report the loss, and the issuance without bonds can prevent the loss, theft and forgery of securities, with good security; 2. It can be listed and transferred, with good liquidity; 3. The term is long and short, but it is more suitable for issuing short-term government bonds; 4. Book-entry treasury bonds are issued through the computer network of the exchange, which can reduce the cost of securities issuance; 5. After listing, the price will go with the market, and it is possible to get more benefits, but it is also accompanied by certain risks.
It can be seen that book-entry treasury bonds have the characteristics of low cost, good income, good security and strong liquidity.
Due to the issuance and trading characteristics of book-entry treasury bonds, it is mainly to meet the requirements of individual investors with strong financial awareness and institutional investors with cash management needs for asset preservation and appreciation. Investors trust it in the seat of the designated securities firm, which is convenient for circulation and trading, strong in liquidity, not easy to lose, and can also obtain high returns by buying low and selling high.
Compared with bearer bonds, voucher bonds and book-entry bonds, they have their own characteristics. From the perspective of profitability, bearer bonds and book-entry bonds are slightly better than voucher bonds. Generally speaking, the coupon rate of bearer bonds and book-entry bonds is slightly higher than that of voucher bonds with the same maturity. In terms of security, voucher bonds are slightly better than bearer from bond and book-entry bonds, and the book-entry bonds of the latter two are slightly better. In terms of liquidity, book-entry treasury bonds are slightly better than bearer from bond's and bearer from bond's.
Four ways to issue national debt
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.
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 distribution method * * * 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.
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 have obtained their own share of national debt issuance. 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 style" 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.
How is the interest rate of national debt stipulated?
According to the relevant regulations of Shenzhen Stock Exchange, the spot commission of Shenzhen government bonds shall not exceed1‰ of the transaction amount; The spot handling fee of the national debt is below 6,543.8+0,000 yuan (including 6,543.8+0,000 yuan), each of which is 0.654.38+0 yuan; 1 10,000 yuan each. Among them, the commission is collected by the member units and the handling fee is collected by the exchange.
A Brief History of China's National Debt Development
Since the founding of New China, the development of China's national debt can be divided into two main stages:
The first stage (1950- 1958):
After the founding of New China, 1950 issued the "People's Victory Discounted Bond", which became the first national bond in the history of New China. In the following "First Five-Year Plan" period, another issue of "National Economic Construction Bond" will be issued every year between 1954- 1958, with a total issuance of 3.544 billion yuan, equivalent to 4.1%of the total national budget economic construction expenditure of 86.224 billion yuan in the same period.
After 1958, due to historical reasons, the issuance of national debt was terminated.
The second stage (198 1 till now):
China resumed issuing government bonds on 198 1, and the development of the government bond market today can be subdivided into several specific stages.
During the period of 198 1- 1987, the average annual issuance scale of government bonds was only 5.95 billion yuan, and the issuance date was also concentrated in 1+0 every year. During this period, there was no primary market and secondary market for national debt, and the issuance of national debt was in the form of administrative apportionment for state-owned units and individuals, with different interest rates. The annual interest rate of national debt subscribed by individuals is four percentage points higher than that subscribed by units. The types of bonds are relatively simple. Except for the 3-year key construction bonds of 5.4 billion yuan issued by 1987, they are all medium-term and long-term government bonds of 5-9 years.
During the period of 1988- 1993, the annual issuance scale of national bonds was expanded to 28.4 billion yuan, and new varieties of national construction bonds, financial bonds, special bonds and value-added bonds were added. 1988, the state conducted a pilot project on the circulation and transfer of government bonds in 6 1 city in two batches, initially forming an OTC market for government bonds. After 1990, the national debt began to be traded on the exchange, forming an on-site trading market for national debt. In that year, the transaction volume of national debt accounted for more than 80% of the total securities transaction amount1200 million yuan. 199 1 year, China began to try out the underwriting of national debt issuance; 1993, 10 and 12, the Shanghai Stock Exchange officially launched two innovative varieties of treasury bonds futures and repurchase.
65438-0994, the Ministry of Finance issued the first half-year and one-year short-term treasury bonds. During the period of 1995, the secondary market of national debt was active, especially the trading volume of futures broke records. However, the "March 27" incident, debt chain repurchase and other illegal events frequently appeared, forcing the futures trading of government bonds to be suspended in May.
There have been some new changes in the national debt market from 65438 to 0996. First, the Ministry of Finance reformed the centralized issuance of national debt into monthly rolling issuance, which increased the frequency of national debt issuance; Secondly, the variety of national debt is diversified. For the first time, at discount's short-term national debt was added, and the national debt with a minimum maturity of three months was added. For the first time, 10 and 7-year interest-bearing national debt were issued, with annual interest. Third, on the basis of underwriting, eight kinds of government bonds that can be listed are issued by tender with the price (yield) or payment period as the target; Fourth, the treasury bonds issued in that year were mainly book-entry treasury bonds, and the paperless treasury bonds were gradually realized.
After 1996, the trading volume of the national debt market declined. At the same time, there have been changes in the national bond market, such as the centralization of custody and the separation of the inter-bank bond market from the non-bank bond market, showing a "three-legged" situation in the national inter-bank bond trading market, the Shenzhen-Shanghai Stock Exchange bond market and the OTC bond market.