Research On The Issuance Of Local Government Bonds Of China

For dealing with the negative impact of the global financial crisis triggered by the U.S. subprime mortgage crisis, curbing the economic downturn and dissolving tension in financial revenue and expenditure needs, China's central government decided to implement the proactive fiscal policy, in November 2008 issued 40,000 billion economic stimulus plan. In order to clarify the responsibility of the central and local, in this plan the central definitely require the local government should arrange matching funds for the public construction projects and other projects which hard to attract social investment. To our unsustainable local fiscal, it may be tantamount to one disaster after another. In order to alleviate pressure on local finance, in 2009, the state council approved the Ministry of Finance represents the central issued the first local government bonds, which marks the issuance of local government bonds has finally taken a crucial step. At the same time, the article also revealed many municipal bond issues in the development of our country.In this paper, combined with the environment that the Ministry of Finance proxy issued two local government bonds in 2009,2010, thoroughly analyzed its issuance,operation and management from the national policies, international experience, market performance and other aspects of the proposed system of local government bonds, in order to find the main problems and risks during the issuance of local government bonds at present. Then based on learning from the world mature bond market and respect for China's current basic conditions, put forward some specific proposals on how to resolve the current problem and improve our local government bond market.