The Study On Credit Risk Of The City Investment Bond

With the acceleration of urbanization process in China, especially after2008, various ofpolicy measures to promote local government financing platform to get the explosive growth,resulting in the issue of a huge city investment bonds, causing the market to the cityinvestment bonds to credit risk attention. On this concern, this paper focuses on the credit riskof the city investment bonds, focusing on the city ’s long-term investment and debt repaymentproblems, while combing the city investment bonds in the status of development, through theguidance of theory, in Wuhan City Investment Corporation through this case to operating andfinancial problems to show their presence and by the policy factors and macro-control,triggering a credit risk problem city investment bonds, which is the number of UrbanConstruction&Investment Company(UCIC) common problem currently, is to effectivelyprevent and resolve of city investment credit risk debt, and thus has important theoretical andpractical significance for China’s fiscal and financial stability of the stable and healthyeconomic development.This paper mainly through documents, combining theory, analysis of representativeWuhan City Investment Corporation in this case, near the proposed guidance for thecountermeasures and suggestions to provide a reference. First, summarized the currentlyavailable literature research, elaborated the theory; secondly shows the scale of the city tovote bonds and made existing structural analysis reveals the repayment of long-term pressurein the inner city to vote bonds exist; through Wuhan City Investment Corporation this case,recognizing the existence of Wuhan City Investment Corporation ’s ability to repay long-termproblem of insufficient and thus may induce the credit risk of the city to vote bonds; Finally,to prevent our country from city to vote bonds credit risk point of view, should be madeUCIC, banks, government and other interested parties to act together to deal with the risk.