Research On Necessity And Feasibility Of China Municipal Bond Issue

This paper aims to bring forward an advice of founding and promoting the development of municipal bond market in China in order to meet the need of productivity development. That was the very production of the research on the necessity and feasibility about issuing municipal bond in China. In the first place this paper expounds the concept of municipal bond and its hypostasis based on painstaking study on a great many of literatures of Chinese and other country's. Further by analyzing the general situation of Chinese municipal bond market and that of other country's this paper illuminated municipal bond's operational principle. In the following chapters this paper quested if local government may be indebted in theory and set forth some economic functions of municipal bond which played an important role in the social welfare field. By analyzing Chinese macroeconomic situation and indagating a series of finance market guide lines this paper educed that issuing the municipal bond in China is necessary and feasible in the end. This paper mainly introduces American municipal market. Anatomy of market conditions such as the supply capability of monetary and the capacity of securities market which municipal bond issue using means of systems analysis and trend analysis is the content of chapter three. Chapter four summarizs the experience of develped country and the attempt in municipal bond market of developing country. Chapter five educes the very project adapt to the special situation of China municipal market and demonstrates the characters of issuer, pricing, and risk management of China municipal bond.The last chapter assumes a dummy case with west concept to examine if the municipal bond is needed by local securities market. At the same time this case can ulteriorly attest to the lemma.The last chapter summarizes the main idea and the essential contention. As a supplement the last chapter explains the question which has not been accounted for in advance. Some lacks and limitations are made clear in this chapter and the henceforth research direction is introduced also.