Local Government Bond Market Development In China

With rapid China's urbanization, the pace of city building everywhere has been increased. As a result, great capital gap has become a universal problem for local governments. At the beginning of 2010, it was reported that many local governments were in serious difficulty with local debt; the banking system also suffered great risks because of those local debt. Therefore, it becomes increasingly meaningful to discuss the issue of municipal bonds and rebuilt of financing system of local governments under such background.By comparing to municipal bonds operations in the USA and Japan, this thesis focuses on the analysis of the feasibility of issuing municipal bonds in China and its design of reasonable issuing system. This thesis introduces its background, significance and basic theories of developing our municipal bond markets in the first place; after that, it summarizes the experiences that the USA and Japan have accumulated in their practice of issuing municipal bonds; the last part of this thesis mainly discusses the actual situation of our municipal bonds market, including the discussions about the existing problems in debt issuance bodies, investors and intermediary organizations and some suggestions about solving these problems.