A Comparative Study Of Chinese And American Local Government Bond Market

In China,The issue of local government debt has long been widely concerned.After the reform of tax system in 1994,local government debt expanded rapidly.After the financial crisis in 2008,the government implemented a proactive fiscal policy,making the financial revenue and expenditure gap further expanded.With the Chinese into the "13th Five-Year" period,Economic growth slowed down,and the local government revenue growth rate is likely to slow down or decline,so that the local government is facing greater financial burden.For a long time,China's local governments do not have the right to issue bonds.In 2015,the new "budget law" provides that the provincial government can issue local government bonds to borrow debt.However,China's local government bond market has just started,many places are not yet mature.Therefore,it is necessary to learn from the advanced experience of foreign local government bond market for further standardization and adjustment.As the earliest country to issue local government bonds,the United States has formed a relatively perfect system in terms of bond size,credit rating and supervision mechanism.This paper will make a detailed and comparative study of the local government bond market in China and the United States,find out the areas where the local government bond market needs to be improved and make suggestions to promote the Continuous development of the local government bond market.Through the summary of the previous literature,it is found that most of the previous scholars' research focused on the local government debt problem,or elaborated the local government bond market in our country and abroad.The purpose of this paper is innovation.In the perspective of research,this paper makes a comprehensive comparative study on the Chinese and American local government bond market,Involving both primary and secondary markets.In the research method,this paper uses the literature analysis method to construct the basic frame,uses the comparative analysis method,combined with the case,carries on the detailed comparison and the elaboration to the Chinese and the American local government bond market,and put forward policy recommendations.This paper first introduces the background and significance of the study of the local government bond market in China and the United States,and summarizes the previous literatures,and expounds the main contents,research methods and innovations of the article.Secondly,it elaborates the general situation of the Chinese and American local government bond market.The third chapter makes a detailed comparative study of the local government bond market in China and America from five aspects,including bond size,investment subject,credit rating,bond liquidity and supervision mechanism.Fourthly,it points out that the gap between the local government bond market and the US local government bond market.lt is mainly expressed as the scale of the bond needs to be further standardized,the bond market investment subject is single,the credit rating mechanism needs to be strengthened,the bond liquidity is poor,and the supervision mechanism is not Sound several aspects.Fifth,the empirical analysis,introduced the New York local government bond market situation and its operation experience.Finally,the paper puts forward the policy suggestions of perfecting the local government bond market,and elaborates the two aspects of the primary and secondary markets.