China should boost its bond market to solve the financing difficulties of some corporations, said Frank FX Gong, Managing Director of J.P. Morgan Asia-Pacific.

Gong said China's bond market is severely underdeveloped. At present, bank loans account for 70 percent of the financing structure while the bond market only accounts for 20 percent, compared with 85 percent in the United States.

Compared with the limited variety of stock products, the variety of the financial products in the bond market means that there is tremendous potential for growth, said Gong.

"Only through the development of the bond market can the difficulty of financing for small and medium-sized enterprises be solved," he said.