The premise of marketization of examination and approval system is that redemption risk can be effectively prevented and controlled. Corporate bond trust is of great significance to the prevention, monitoring, early warning and resolution of bond redemption risks. Corporate bond trust is established for the purpose of protecting the interests of investors, and preventing liquidation risk is the core of trust design. The trust company accepts the mortgage guarantee right provided by the borrowing enterprise as the mortgage guarantor of the investor. In fact, the liquidation risk of bonds was transferred to the trust company. Therefore, before signing the trust deed, the trust company should conduct a strict review of the borrowing company, and conduct a detailed review of the operation, reputation and financial status of the borrowing company from the perspective of professional institutions, so as to make a choice whether to support it or not. This is equivalent to turning a check from the government to investors into a check from a trust company to investors. Strict issuance audit is carried out by market stakeholders in a more professional way, which can not only improve efficiency, but also ensure the quality of issuing enterprises. Before the bond expires, the trust company will actively track and monitor the debt-borrowing enterprises and urge them to pay off their debts in time. When the bond expires, once the enterprise cannot repay it, the trust company will be responsible for handling the collateral to repay it. Corporate bond trust can effectively prevent, monitor and resolve the risks before, during and after lending, which is helpful to free the government from the busy examination and approval work and promote the bond issuance market to change from government-led to market-led
Second, it is helpful to promote the construction of investor protection system in China's bond market. The level of investor protection in China's securities market is very low. For the bond market, the investor protection system centered on secured settlement is almost a mere formality. In the actual operation of debt-borrowing enterprises, mortgage guarantee clauses usually have the following three forms: first, the guarantor is not required to provide any collateral or guarantor, and is exempted by the competent authorities with its own reputation and wealth; Second, certain funds are used as repayment guarantee, such as railway bonds guaranteed by railway funds; The third is to provide a third party as a guarantor, which is a common form of guarantee adopted by debt-borrowing enterprises, and most of them use group companies or affiliated companies of debt-borrowing enterprises as guarantors of bonds. According to international practice, there is no case of issuing bonds with corporate assets as collateral in China. Regardless of the difference in the degree of guarantee for investors between enterprise assets as collateral and third-party guarantees, the monitoring and recovery of debt-borrowing enterprises and their guarantors are actually in a state of absence. Once the borrowing company and its guarantor are poorly managed, there is a risk of bankruptcy. Theoretically, creditors can exercise the right of recourse by organizing creditors' meetings, or they can recover debts by way of group litigation, but its high cost, complicated procedures and difficult operation almost make recourse useless. Under the strict examination and approval access system, on the one hand, bonds are in short supply; On the other hand, enterprises that have been approved for bond financing have borrowed the credit of the government in a sense, so that investors can accept all the orders. When the secured settlement mechanism is not available or invalid, bonds sell well. However, with the continuous improvement of the bond market, investors' risk awareness has gradually increased, and the protection of investors' interests has surfaced. Perfecting the investor protection system is the core issue in the construction of China bond market. The practice in developed countries has proved that corporate bond trust has a unique function in solving the problem of bond guarantee and settlement, and it is the core mechanism of investor protection system.
Third, it helps to cultivate the credit mechanism of the borrowing enterprise itself. Honesty construction is another problem in the construction of China securities market. The benign operation of the bond market depends on the honesty and credit of the borrowing enterprises and their timely performance. The construction of good faith needs the attention of enterprises, the restriction of laws and the pressure of market environment. Due to the existence of the trustee in the corporate bond trust, it constitutes a realistic constraint on the borrowing enterprises. Before borrowing money, trust companies should strictly examine the borrowing enterprises and require them to provide mortgage security rights. Moreover, in order to prevent the value of mortgage collateral from decreasing or losing in the process of borrowing, the trust company requires the borrowing enterprise to carry out property insurance on the mortgaged property or promise remedial measures when the value of collateral decreases, which means that the borrowing enterprise should effectively guarantee the repayment of its debts and build its commitment on the basis of material safety. In the market competition, the issuer that provides investor protection system is undoubtedly more likely to win in the competition. As the principal, the debt-borrowing enterprise sets up a corporate bond trust for the purpose of protecting the interests of investors and hands over the secured property, which is in itself a way for the debt-borrowing company to express its sincerity to investors, which reflects the borrower's sense of responsibility and attention to credibility. With the gradual maturity of China's bond market, corporate bond trust will surely become a competitive means for borrowers and an active choice for enterprises to enhance their external financing capabilities. The issuer's credit mechanism will also gradually emerge.
Fourth, it helps to curb excessive competition among bond underwriting institutions. Under the strict examination and approval system, the supply of corporate bonds is far less than the demand. In 2000, the balance of corporate bonds was 9.9 billion yuan, 200 1 year was 144 billion yuan, and in 2002, 32.5 billion yuan was actually issued. The imbalance between supply and demand leads to the extremely hot primary market and the extremely hot secondary market of bonds, which leads to excessive competition among underwriting institutions. According to insiders, underwriters need to use more resources for a small-scale bond underwriting project than even a medium-sized stock project. The number of members of the corporate bond underwriting syndicate has increased from five or six to fifteen or six, and the size of the corporate bond underwriting syndicate of the same size has more than tripled. Corporate bond underwriting attracts many underwriters because underwriters believe that there is no risk in engaging in corporate bond underwriting. First, under the seller's market conditions, bonds are sought after by the market, and the risk of issuance is minimal; Secondly, the risk of future liquidation and redemption shall be borne by the borrowing enterprise or its guarantor. As long as the underwriter sends it out, there will be no worries in the future. Excessive competition leads to an increase in transaction costs and a decrease in resource allocation efficiency.
Corporate bond trust helps to improve this situation. In the corporate bond trust, the underwriter is not only responsible for the sale of bonds, but also acts as a mortgage guarantor for investors. Dual status forces underwriters to provide full service for corporate loans. The interests of securities firms are closely related to issuers and investors, and run through the whole process of bond issuance, holding and repayment of principal and interest at maturity. While increasing business income, brokers also strengthen risks and responsibilities. Corporate bond trust has increased the responsibilities of brokers and raised the requirements for brokers. In the competition, only those underwriting institutions with comprehensive advantages in financial strength, talent advantage and business level can win, and some small and medium-sized brokers may automatically quit to avoid blind competition.