The Researsh On The Risk Of The Local Government Bonds In China

The research of this dissertation stems from Chinese local government problem at the present stage.The accelerated process of Chinese industrialization and urbanization has increased financing needs of local government,but in reality revenue is difficult to meet the financial needs of local government development of the local economy.Before the 2009 Chinese law expressly prohibits to issue the local government bonds,and government at all levels via financing platforms of local government take a lot of hidden debt and contingent debt,for meeting the needs of economic in the region.The results is the scale of local government debt increased sharply and risks growing.China has liberalized restrictions on municipal bonds in 2009,it has undergo two model—— “own-issue,other-repay” model and“own-issue,own-repay” model,issued by the pilot transform to the country,the real municipal bonds formed in 2015.Accelerating development of local government bonds regulates the financing channel,plays a catalytic role in the development of local economy and makes the local government debt risk explicit.Current characteristics of local government bond is scale increasing year by year,bond security obviously different between the Central,the Western and the East,bond issuers in line with the repayers.This dissertation will be focusing on the risk management of local government bonds based on the current situation to analyse the internal risks and external risks.Specifically,internal risks are issue risk,liquidity risk and efficiency risk.external risks are widening gap in regional economic development and damaging the government credibility.Using national accounts indicators,financial indicators ans indicators of invertment in fixed assets etc.11 indicators data to test local government debt risk of 30 provinces in China.In general,the debt-servicing ability in the Central and Western is no better than the East.In the last of the dissertation proposing policy recommendations from internal and external management to hope to control the risk of local government debt effectively,standardize and improve the development of our bond market.