The Research Of The Market-oriented Operation Mode For Our Local Government Bond

Some development countries have already had mature system to issue local government bond with high marketization degree. With the advancement of our market economy and further improvement of our capital market, our bond market has developed rapidly, we have had part of the economic conditions to issue local government bond. In recent years the issuance of local government bond by the central agent and the fact that four provincial pilots run the local government bond strongly reflects the necessity to use local government bond. However, given the complicated economic situation, the standing committee of the11th National People’s Congress in June2012restored the previous ban on the provisions of the local government bond issuance failing to give independent qualification of debt financing for local governments. This shows that the conditions of issuing local government bonds is not yet fully equipped and at present there are obstacles in the feasibility of the presence, but it doesn’t mean that local government bonds are not suitable for the economic development of our country. According to this, the article firstly analyze the conditions of the issuance of local government bonds as the starting point for the proposed conducive to the issue of market-oriented mode, then we analyze situation and problems of the local government bond, and on the basis of combined operating experience of mature foreign local government bond to explore our free features in our own local government bond and its market-oriented path and selection.This article is mainly divided into five parts. The first part firstly has come up with the purpose of this study and the significance, we also introduce the history and other existing research results on this topic at home and abroad. At the same time, it also pointes out the research method of this article and innovation pointsThe second part describes the related financial effects of the operation of the market-oriented local government bonds, a financial point of view to explain the significance and necessity of issuing local government bondsThe third part is the focus of this article, firstly describing the existing problems of the local government bond issuance, and then in order to solve the problems we find the conditions for China to market-oriented issue local government bonds.It include how to develop local government bonds of related basic factors and the types of risk. The most important is the confirmation of the debt security issuance based on Credit Risk Measurement Model.The forth part mainly introduce the learning of market-oriented operation successful lessons and experiences of local government bonds in America and Japan, these developed countries, whose fostering strengths and circumvent weaknesses, and we also combine China’s national conditions to find our own way.The fifth part comes up with path and selections which are helpful for China to issue local government bonds.