Case Analysis Of City Investment Corporcation Bond Financing

Urban investment bonds are the innovation of financing methods that local governments have to solve the problem of inadequate funds for urban infrastructure construction under the background of China's tax-sharing reform.The issuance of urban investment bonds has provided a certain amount of financial support for the construction of local government infrastructure,which has alleviated the problem of inadequate funding for local government development to some extent.However,behind the rapid development,there are also various problems.The city's investment bonds generally have problems such as non-standard operation subjects,downward movement of issuers,uncontrolled issue size,poor self-management ability,and large repayment risk.In particular,the introduction of the relevant provisions of the "New Budget Law" in 2014 and the "Prediction Plan for Local Government-based Debt Risk Responsibility"(No.88)in 2016 raised new challenges for the further development of city investment bonds.Therefore,the analysis and research on the problems existing in China's urban investment bonds are conducive to promoting the further development of urban investment bonds,promoting the transformation of urban investment companies,improving the investment and financing mechanisms of local governments in China,deepening the financial system reform,and further promoting the economic development and urbanization rate.This paper analyzes the causes of the city's investment debt,the development process,the necessary actions and possibilities of the issuance,the existing problems,and the improvement measures as research clues.Taking into account the differences in economic development in various regions,we select the representative eastern provinces of Jiangsu Province and the western province of Chongqing as examples to analyze.From the four perspectives of the operating model,the issuer,the issue size,and the repayment risk,analyze the problems existing in the city's investment bonds and provide specific recommendations.After research,it has been found that the current problems of the city's investment bonds mainly include unreasonable operation models,unregulated distribution subjects,uncontrolled distribution scale,and high repayment risks.Based on the analysis of the problems existing in urban investment bonds,this paper proposes specific proposals for changing operating modes,regulating issue entities,controlling debt size,and establishing payment guarantee systems,so as to improve the self-management capabilities of urban investment companies and improve the local government investment and financing mechanism.