Development Of Research On Municipal Bonds

U.S. subprime mortgage crisis triggered by the international financial crisis on China's negative impact is gradually revealed ,in face of the serious economic downturn, financial revenue and expenditure situation of tension, the Ministry of Finance through the issuance of bonds to increase in large-scale government investment. In order to clarify the central and local responsibility, local government matching funds arranged accordingly, the issue of local government financing local government bonds is a fairly standard way.This year the Ministry of Finance represents the Chinese government issued the first local government bonds, and is responsible for agency debt service. The local government bonds credit close to bond, a local government with the central goal of expanding domestic demand an important measure to maintain growth, but also makes our country in the municipal bond issuance aspects of the feasibility and necessity of finally taken a crucial step. At the same time, the article also revealed many municipal bond issues in the development of our country.This article is for the status of above. The article is divided into five parts, the first part is the introduction, analyzed the background and significance of municipal bonds in China; in the second part ,the knowledge of municipal bonds were outlined, focusing on municipal bands'financing advantage compare with commercial bank loans Central lending financing, quasi-municipal bond financing, BOT project financing and land financing; third part of the financing of municipal bonds in China analyzes the current situation that exposed the many municipal bonds issues, such as: relevant laws and regulations are not perfect, cold market, bonds and investment period of the Term mismatch simplification of investment, interest rates unreasonable design, and lack of risk prevention measures; fourth section describes the development of municipal bond market of the United States, Japan , Poland and other countries, the regulatory system of municipal bonds in US, the issue of examination and approval system in Japan and Poland's dual budget system worthy of our reference and learning; the fifth part of the municipal bonds for the problem, propose the development of the municipal bond market, the relevant policy recommendations, such as modifying our "Budget Law", giving local governments on municipal bond's right, the development used in municipal bond specialist law; municipal bond interest rates should higher than that of bonds, period should long-term oriented; design a variety of bond types and bond hedging tools to active secondary market, great efforts to cultivate institutional investors, to encourage individual investors; through the development of credit rating system, establishment of bond insurance and bond sinking fund and other means against bond risk.