Research On The Issue Of The Legal Regulation Of Risk Supervision Of Local Government Bonds In China

As an important part of the system of national bonds, local government bonds has played an irreplaceable role in a country’s socio-economic development and public infrastructure construction. Compared to a mature development of western developed countries, the development of local government bonds in China seems lagging behind. With the in-depth socio-economic development, China has begun to gradually local government bonds issued by the pilot project. However, due to some reasons, such as the lack of relevant laws and regulations of local government bonds issued, the imperfection of risk supervision and prevention mechanism, the imperfection of debt service mechanism and the lack of its management and oversight, China’s local government bonds, on issuing, supervision and debt servicing, has significant potential risks, such as credit risk, public risk, debt risk and so on. Therefore, there has been the important significance on regulating the risk supervision of local government bonds in China.This paper is divided into five parts:The introductory part, synoptically introduces the background, theoretical significance and practical significance of this article, and ideas and frameworks, research methods, innovation and deficiencies of this article, etc.The first part, starting from the concept of local government bonds, generally summarizes the local government bonds, expounds the necessity and feasibility of issuing local governments bonds in China.The second part, through the analysis of the risk status quo faced by the local government bonds running, and then explores the causes of the risk, including:the lack of the relate legal system of issuing local government bonds, the imperfection of risk supervision and prevention mechanism, the imperfection of debt service mechanism, the lack of its management and oversight, and so on.The third part, through the investigation of the risk supervision mechanisms of local government bonds of western countries such as the United States, Japan, France and so on, sums up the mature experience of legal regulation of risk supervision of local government bonds of western developed countries, sums the important revelation of legal regulation of the risk supervision of China’s local government bonds.The fourth part, in allusion to the risks faced and the reasons of China’s local government bonds running, learning from the relevant mature experience of legal regulation of risk supervision of local government bonds of western developed countries, proposes a number of measures to perfect. On perfecting the legal system of issuing local government bonds, proposes to amend "the Budget Law" and "the Guarantee Law"and other laws, strengthens the harmony and unity of the legal system as a whole; on perfecting the risk supervision mechanisms of local government bonds, improves the information disclosure system, the credit rating system and risk prevention early warning system,and so on; on perfecting legal mechanisms of debt servicing of local government bonds, establishes and perfects the sinking fund mechanism, clears and definites liabilities of related entities; on the management and supervision of China’s local government bonds, proposes to manage local government bonds by government, strengthens industry self-regulation, strengthens the supervision of the local people’s congresses and social supervision.