In 2009,200 billion municipal bonds issued in China.As it was the first time to issue municipal bonds, the actual trading situation is not the same as respected. It can be found that the reasons are low interest rate, short period, the subsequent listing problem, through analysis logically it's examination and approval, circulation and supervision, etc.To promote the municipal bonds market in China, thoroughly solve the problem exposured in the first listing, and make local government financing normalization, transparent come true. Measures are proposed as followed:The fundamental measure is to solve the main problems exposed in the first listing. Such as to modify the terms of the Budget Law about that municipal bonds do not allow to be issued, the scale of issuing and the pattern of issuing, etc.For local government bonds subsequent long-term and stable development, the long-acting mechanism of municipal bonds should be established. The long-acting mechanism includes three parts. One is that the local government should have the financial power to match its management. Second is administrative supervision, which includes budget supervision, central budget supervision, and financial supervision and audit supervision. Public supervision and supervision from CSRC and other legal supervision. The third part is the local government as fundraiser, should improve the relations with investors through financial innovation and cultivating themselves credit. |