Research On Sub-national Government To Issue Bonds By Their Own

China’s current sub-national government debt has aroused the concern of decision makers and economists, the debt is sub-national governments in the difficult situation of the financial funds in disguise borrowing financing platform. The existence of debt by nature vague, huge, is not standardized and other issues, known as the "threat number one killer of China’s economic security and social stability. Many scholars have suggested that since the local government borrowing has been the objective existence, then we can consider allowing local governments issue municipal bonds. October20,2011, the Ministry of Finance issued the notification of the2011local government to issue bonds on their own pilot approach "to carry out their own local government bond issuance pilot will be in Shanghai, Guangdong Province, Shenzhen and Zhejiang Province, China issued major attempt of the local government bonds.Therefore, specifying our country sub-national government’s right of raising loans and setting up the sub-national government bonds system can be turn the recessive loans into formal loans under the effective system of monitoring and controlling and increasing central government’s control power by innovating sub-national government’s bonds system. The author believes that:the long run, the combination of foreign successful experience fully the necessity and feasibility of local government bonds on the basis of the institutional system of scientific and rational design of issuing sub-national government bonds, moderate given the right to local self-government bond issuance, of great significance for strengthening the management of local government debt, regulate government borrowing way. Around this purpose, the framework structure is so arranged that:The first part mainly concludes the research background, innovations and puts forward this thesis’s research meanings、and the present research of this field. The second part analyzes the theoretical basis of the local government bond issues, there are three summary. In the first section illustrates the concept, types and functions of local bonds. And the second section applies the theory of fiscal decentralization, public goods theory and the theory of city expenditures, Plus the international status of the country sub-national government bonds as the research foundation of our country sub-national government’s raising debts.The third part analyzes our country sub-national government debts’ present situations and also problems.The fourth part of China’s sub-national government bond issuance by the necessity and feasibility study. The first section analyzes the positive significance of the sub-national government. Section Ⅱ discusses the necessity of issuing sub-national government bonds from the five main aspects. The third section is mainly to study the feasibility of issuing sub-national government bonds in China.The fifth part tries to set up a system of our country’s sub-national government bonds; it researches mainly about two parts:the design of sub-national government bonds (debt types, scale, interest rate, etc.) and its control and monitor.