What Is a Bill Market?

The bill market is the place where bills are traded through circulation. The bill market is divided into the acceptance bill market and the bill discount market. In western countries, the bill market is usually a joint organization that can make payments on the day of settlement between banks in the same city. After a bank participates in business activities, each bank holds checks, cashier's orders, and money orders from another bank. As a result, the banks negotiated that each day they exchanged bills belonging to the other bank at a fixed place to offset each other's claims and debts, dispense with cash delivery, and simplify procedures for receiving and paying. In addition to offsetting each other, there are still gaps, which are transferred to the central bank, or cash payments are settled in a timely manner. Those specializing in bill acceptance business shall be the acceptance bill market; the place where the bill discounting business is directly operated is the bill discount market. The bill transactions in the two bill markets are conducted in accordance with the law. ^[1]

Bill market

The bill market in the People's Bank of China's "Monetary Policy Implementation Report" refers to: records occurred in the business of national commercial banks

This market is divided by the issuing body of the bill, including the bank bill market,

In this market, the characteristics of Zijintong are: short term, small amount, flexible transactions, many participants, and easy control of risks. It can be said that it is an ancient, popular and basic market.

China's bill market had a considerable scale during the Ming and Qing Dynasties. In the early days of liberation, bills were still widely used in the course of commodity transactions, but by the early 1950s, credit concentration had been implemented throughout the country, commercial credit was cancelled, and commercial bills were replaced by bank settlement transfers. Since then, the concepts of bill financing and bill markets have disappeared from socio-economic life. In 1986, the People's Bank of China began to implement the "three votes and one card" in response to the need to develop a market economy, and tried to transfer bank settlement to a track based on commercial paper financing. Resumption of "collection commitment settlement". By 1996, the People's Bank of China once again advocated the development of the bill market. After several years of efforts, bill financing gradually heated up, and commercial banks also rushed to start bill discounting business. Many large and medium-sized enterprises experienced the features and advantages of bill financing. The business is generally welcomed, the market transaction volume has made significant progress, and the bill market has begun to emerge.