Research On The Issue Pricing Of The City Investment Bonds In China

Since the the Eighteenth National Congress of the CPC,the urbanization has become a hot aroused topic.In order to achieve the great revival of the Chinese nation,the construction of the new urbanization need to continue to move forward,but it requires a lot of capital and infrastructure investments in the process.The revenue distribution structure between central government and local finance had changed since 1994,when the tax distribution system had been reformed.Then,central government centralize financial power and decentralize which causes lack of local financial resources.Before the new budget law revision in 2015,the local government in principle can not issue local government bonds.But subjected to the needs of rapid development of economic and social,the local government start to raise funds from the capital market through the local city investment platform.Then the City Investment Bonds come into being.As a kind of implicit municipal bonds with Chinese characteristics,the City Investment Bonds' gains are very considerable.But in the same time,there are many risks,such as the opaque information of the local government debt.Then how to price the City Investment Bonds becomes to a big problem.This article has five sections and our main focuses are the factors that may influence the City Investment Bonds and we also try to establish a regression model of factors which affect the price of the City Investment Bonds.