The scale of financing via the bond market has shown signs of steadily increasing following de-leveraging reform last year, said Zhu Haibin, the Managing Director of JP Morgan and the chief China economist, Yicai.com reported.

Zhu thinks large businesses tend to benefit more from the bond market. From the experience of other countries, those large enterprises were most often benefited in the initial stages of development.

Especially for those firms with a clearer balance sheet and higher transparency, their cost of direct financing via the bond market will be even lower, Zhu said.

When many large business clients move to the bond market for financing, banks will adjust their credit policies, such as focusing on medium or small sized business. Thus, we have seen a similar change in Japan’s financial reform, Zhu added.

Zhu believes in the long run, the financing channels of bond market, stock market and various other capital markets, together with the indirect financing system, will form a multi-level and multi-channel investment and financing system.