Impact Of Deputy Governor With Experience Working In Financial Institution On The Risk Of China’s Chengtou Bonds

As an important financing means for local infrastructure construction,Chengtou bonds have played an important role in stimulating investment and stimulating economic growth.However,for a long time,the continuous growth of the i ssuance scale of Chengtou bonds and the continuous accumulation of the stock scale of Chengtou bonds have also brought a lot of potential risk exposure.With the breaking of the rigid payment,the financing platform also faces the risk that the Chengtou bonds cannot be repaid when they expire.In order to prevent the risk of Chengtou bonds,the government has issued relevant documents many times.After the financial work conference in 2017,a group of senior executives from financial institutions were transferred to local vice governors who are known as the vice-governors of finance.The financial knowledge and experience of the vice-governor of finance will help the local economic development and the improvement of the financial environment,thereby promoting the reduction of the risk of urban investment bonds;the vice-governor of finance tends to be younger,and will generally return to the financial system after the end of the term and be promoted There is little pressure and will not blindly borrow for promotion;the vice governor of finance,with his professional advantages,has a stronger awareness of risk management,which helps him identify potential risks and control the risks of Chengtou bonds.This paper collects the detailed information on the app ointment of vice governors and Chengtou bonds data in various provinces in my country from 2013 to 2020,and uses the double difference method to analyze the impact and heterogeneity of the appointment of vice governors of finance on risks of Chengtou bond s..The study found that the appointment of the vice-governor of finance can help reduce the risk of Chengtou bonds,but its role has a lag.There is a difference in the impact of vice governors of finance and vice governors with only a professional backgr ound in finance on the risk of Chengtou bonds;the appointment of vice governors of finance can reduce the risk of Chengtou bonds,while the vice governors with only a background in finance have different effects on the risks of Chengtou bonds.The effect of taking office on the risk of chengtou bonds is not significant.The age of the vice governor of finance has no significant effect on the risk of Chengtou bonds.There is regional heterogeneity in the role of the vice-governor of finance,which helps to reduce the risk of Chengtou bonds in the eastern region,but has no significant effect on reducing the risk of Chengtou bonds in the western region.Based on theoretical analysis and empirical results,this paper makes suggestions:continue to promote the official appointment mechanism of the vice-governor of finance,let officials use the experience accumulated in institutional practice in local risk governance to help local economic development and local government debt risk prevention and control;improve the official governance system,establish a set of "top-down" and "bottom-up" combined assessment standards,pay more attention to the high-quality development of regional economies,and strengthen the party’s leadership over financial work.In other pro vinces and cities,a leading group for the prevention and resolution of fiscal and financial risks has been established;differentiated policies have been implemented to strengthen off-site exchanges between officials.