Research On The Market-based Issuance Of Local Government Bonds

With the amending of "Budget Law" and the Enacting of a series of strengthening local government debt management policy,China's local government debt management has entered a new stage of the construction of the rule of law.At the same time,the issuance of local debt management has undergone profound changes,with the issuance management model gradually be market-oriented,the powers and responsibilities of local governments in the issuance process become further clarify.In the market-oriented reform of local bond issuance process,the central government hopes to strengthen the market restraint by introducing market mechanism such as credit rating and information disclosure.However,the actual operation of the market-oriented issuance still faces many problems in pricing mechanism,credit system and information disclosure.This is not conducive to local debt market cultivation and sustainable financing of local government.And only give full play to the market pricing mechanism,so that the market to determine the cost of local government financing in order to ensure the sustainable operation of local debt.Therefore,to analyze the problem in the issuance of local government bonds,and to put forward policy recommendations is the focus of this paper.This paper focuses on the challenges of local bond issuance under the background of local debt management reform and puts forward some policy suggestions to promote the market-oriented operation mechanism.First,the background of the research is introduced,and the main features and significance of the marketization issue are put forward.Secondly,with the example of local bond issuance in recent years,this paper analyzes the problems in the current operation of local debt market,including the non-market factors interference,the rating is a mere formality,the disclosure supervision is not in place and so on.Finally,combining the experience of the United States and Japan in the local bond issuance model,information disclosure,risk control and market supervision,the paper puts forward some suggestions on improving the pricing mechanism,regulating the credit rating,strengthening the information disclosure,perfecting the market supervision and supporting the fiscal and taxation reform.And puts forward some policy suggestions to promote the operation mechanism of local bonds marketization.