Research On The Development Of Municipal Bonds In China

In recent years, China’s bond market is developing rapidly, the concept of capital market focus on the stock market, underestimate bond market has been changed greatly. But compared with developed markets in Europe and America, China’s bond market still exist a large gap. At present our country has not launched a comprehensive municipal bonds in the real sense, but with China’s economic development has entered a new normal, especially the economy of our country is facing a greater downward pressure on the domestic situation, launched a comprehensive municipal bonds can improve China’s urbanization development speed, alleviate the financial burden of local governments, improve infrastructure construction, change the existing economic structure, build a multi-level capital market, improve capital power of the sustainable development of economy in our country and the international competitiveness, all have important meaning. From the central government issued local bonds in 2009 to 10 provincial and municipal local government pilots, including Shanghai, Zhejiang, etc issued local government bonds spontaneously in 2014. All of these have accumulated valuable experience for the formal development of municipal bond market in our country. And in 2014 the "budget law" amendment passed, formally established the legitimacy of local governments to issue bonds, further for comprehensive municipal bonds providing a scientific and effective evaluation standard and laying a good foundation.Theoretical basis of the main content of this paper is divided into five parts: the first part, overview the concept of municipal bonds definition, and classify and summarize the theoretical basis of municipal bonds, mainly including three aspects: public debt theory, public goods theory and fiscal decentralization theory. The third part focuses on the comprehensive introduction of the necessity and feasibility of China’s municipal bonds, from three aspects of urbanization perspective, fiscal perspective and financial perspective, analysis of the necessity of municipal bonds, from the legal level, institutional level, market level and the macro economic analysis of the four aspects of the feasibility of municipal bonds. The second part firstly introduces the current situation of the development of municipal bonds pilot and quasi-municipal bond in China. Secondly, the development of China Municipal Bond problems has been investigated in detail. The fourth part, through the introduction of the development experience of American municipal bonds, summarizes the experience for the enlightenment and lessons for our country. The fifth part, based on the specific circumstances of our country, in order to the basic principles of the development of municipal bonds market in China, issuing body, distribution of the period, issuing scale, market pricing, security system and construction of risk prevention, put forward a set of specific system design for China’s national conditions of the municipal bond market and summarize the relevant policy recommendations.