Research On The Financing Of China 's Municipal Debt And The System Design Under The Urbanization Construction

China’s urbanization construction has entered a stage of rapid development, which also created a new economic growth point. The main content of urbanization is to build city infrastructure. The funds of this are provided by the local government. The huge capital pressure overwhelms the local government. In 1994, our country has reformed the system of tax distribution, redrawing the government’s financial and administrative power. The local government in charge of more routine power, however,property rights was handed over to central government. Under a series of questions such as imperfect system of transfer payments and unsustainable land revenue, local governments need legitimate way to raise funds. "Budget law" do not allow local governments to issue debt,in order to avoid this clause, local government use of local government financing platform, such as urban construction investment company, have issued a lot of non-standard city investment bond. The debt has reached 14 trillion yuan. But city investment bond is not transparent, leading to the accumulation of a large number of urban risks.China’s municipal bonds is still at the exploratory stage, we need to learn from foreign issuing policy. At the same time, we need to guard against the risk of municipal bonds. This paper analysis the foreign mature mechanism of municipal bonds, put forward the issue system design of China’s municipal bond from the aspects of distribution, supervision, risk prevention. This paper mainly adopted comparative analysis, international experience for reference, qualitative and quantitative research, proposed what our country should do to perfect our municipal bond issuance system.