Research On China's Local Bond Issuance System Study On Properties And Utilization In

Local debt local government funds raising tools,which can provide local governments with standardized financing channels,effectively prevent and resolve local debt risks,accelerate the construction of urban infrastructure and public service projects,improve the level and structure of local fiscal expenditures,and provide investors with More investment options.The formation of China's local debt system has been carried out in parallel with the economic and social development and deepening reforms.Specifically,it can be divided into the following five stages: the short-term release period before 1994-the blank period from 1994 to 2009-the "generation and return" phase from 2009 to 2011-2011 to 2013 The “spontaneous return” phase – the period of “spontaneous self-sufficiency” since 2014.At present,the main body of China's local bond issuance is only the provincial,municipality and the municipal government.The government below the provincial government does not issue credits on its own.From the perspective of the scale of issuance,since the official opening of the local debt wassuance in 2009,the scale of China's local bond issuance has been increasing year by year.The local bond issuance has gradually become more and more abundant.The first local government general bond with a long term of 20 years has been welcomed by insurance institutions as soon as it is listed.The issuance method is a combination of open tendering and targeted underwriting;The bond issuance rate is gradually becoming marketized.At this stage,the scope of China's local debt issuance is limited,and it cannot meet the financing needs of local governments,especially city and county governments.In the current local bond issuance process,the buyers of bonds are basically banks,and the investors are single and market.Insufficient,local debt is mostly held by banks,and the participation of financial institutions and individual investors outside the bank is low;at present,the credit ratings of local debts in China are not different,and the reference value for investors is not large;the quality of local debt information disclosure is not good.This makes it impossible for the public to fully grasp the overall situation of bonds and debts,and to make accurate judgments on local debt and debt risks.Stones from other hills,can learn.The US municipal bond market is a well-established and benign market.After nearly 250 years of development,the US municipal bond market has continued to improve.To date,the US municipal bond market has become a global model for low-cost financing and efficient support for infrastructure financing,providing funding not only for community building,but also providing investors with a solid source of income.The United States reduces transaction costs by doing business-to-market mechanisms;most municipal bonds are tax-free,promoting investment incentives for individuals to purchase municipal bonds;strict credit ratings and information disclosure,reducing local government bond risks and strengthening investor protection.Drawing on international experience and combining China's national conditions,gradually improving local debt management and market system is of great significance to the development of China's local debt and the promotion of economic reform.This paper believes that the creditor's right should be further decentralized,and the municipal and county governments can learn from the previous experience of piloting local debts.By means of piloting,some local governments at the county and county levels will issue credits independently to raise funds for urban construction;local governments should Formulate supportive encouragement policies,encourage investors to invest,introduce market makers in the trading process,facilitate transaction entities to communicate,and improve the marketization of local bond issuance;restrict the behavior of rating agencies by legal means,and learn from the dual rating system.Domestic credit rating agencies and international credit rating agencies carry out benign competition to strengthen the credit rating of local bonds;improve the relevant legislation on local financial information disclosure,change the non-disclosure is the norm,openness is the inherent cognition of trouble,use the network to improve the publicity,Regularly disclose the audited local government financial reports and improve the local debt information disclosure system,so as to improve the local debt issuance system of vinegar.