Official Change, Exchanges Between Different Places And The Issuance Of Urban Investment Bonds

City investment bond is a kind of local government provides invisible guarantee,by the city construction investment company issued the bond.In the wake of the financial crisis in 2008,the central government issued a four-trillion-dollar investment plan to encourage local governments to set up financing platforms to raise project funds to ease the impact of the domestic economy.Local governments have responded to the call by issuing city government bonds to raise funds for urban construction projects,which have begun to expand.By the end of 2016,the stock of municipal investment bonds in the bond market has reached nearly 6.5 trillion yuan.As urban construction investment accounted for the proportion of direct financing of local government debt financing the rapid rise of urban construction investment bonds issued in quantity,credit rating,the defects of law and system gradually exposed,udic debt issuers and crisis of confidence between market investment main body,is exacerbated by the concerns of the people throw debt default risk on the city.As the main source of local government debt,urban investment bonds should solve and prevent the risk of urban investment.The issue of this notice udic debt have political color,in China's fiscal decentralization system and relative performance is the core of the promotion examination system,local officials tend to control the information monopoly advantage,with jurisdiction of administrative examination and approval,land configuration,loan guarantee,preferential policies,such as resources,which have greater discretion to choose the region's economic policy.Because of the motivation to maintain and expand their own interests,officials will revise or prematurely repeal the existing plans and policies so that they can meet the needs of local governments and their own interests during the term of office.Udic debt as one of the important means of financing of local government,the replacement of officials and personnel transfer is inevitable that the policy is not continuity,trigger enterprises and investors' expectations uncertainty,cause an effect to city for debt issuance.Surrounding the issue,based on the theory of policy stability,impact on the official change,long-distance communication udic issuance mechanism through theoretical analysis,which provide comparatively complete theory support for the empirical part.In terms of empirical analysis,this article is divided into research,macro to micro aspects first research official change,long-distance communication number of issuance,the influence of the size on the city,on this basis,joined the official term is considered.Secondly,this paper studies the official change,long-distance communication influence on city for bond issuance costs,and analyses the officials change number and communicate to the different level of economic development area of city for bond issuance costs affect whether there is a difference.Finally,the paper summarizes the research and puts forward policy Suggestions.The main conclusions of this paper are as follows:the policy discontinuity caused by the change of officials and the exchange of different places will inhibit the issuance of local government bonds in the short term,and significantly reduce the number of bonds issued and the scale of issuance.In the long run,the official term presents inverted U relationship with city for bond issuance,with the increase of the term,the policy of discontinuity inhibition will gradually disappear,udic issuance will gradually increase,when officials outgoing,udic issuance began to decrease.The policy instability caused by the change of officials and the exchange of different places will enhance the uncertainty expectation of enterprises and investors and raise the cost of issuing debt.And the more officials change,the more unstable the policy,the higher the cost of issuing debt.Communicate to officials in less developed areas,in addition,in the case of scarce resources and low credit rating,through the issuance of high-yield bonds to attract investors,the official communication compared to the developed areas,the local debt cost,high risk of default.Based on this,this paper put forward the proposal to introduce a third party performance evaluation mechanism,the social supervision mechanism,the outgoing audit and lifelong liability system restraint mechanism,such as reducing instability due to the policy influence on local government financing costs,reduce udic debt risk.