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Annual Report on Development of China's Local Government Bonds (2021)


By:Mao Zhenhua, Sun Xiaoxia, Yan Yan, Wang Helei, Yuan Haixia

Publisher:Social Sciences Academic Press


Publication Date:2021-03-24


Paper book:US $63
Ebook:US $
Paper Book& Ebook:US $
1759 1000

Table of contents:

About the author(s):


The local government bond market has maintained rapid development since its full launch in 2015. As of October 2020,the existing scale of China’s local government bond has reached RMB 25.53 trillion,accounting for 23% of the bond market,and it has become the largest in volume in the bond market. It is of great significance in enriching China’s macro-control tools,standardizing the management of local debt,and promoting the development of the bond market. In 2020,in the context of the fight against the epidemic,local government bond was an important tool for counter-cyclical regulation. It continued to expand capacity and improve efficiency,and increased investment in the new infrastructure and new urbanization field. The proportion of special bonds used as project capital further increased,and the special bonds were allowed to supplement the capital of small and medium-sized banks,playing an important role in stabilizing economic growth. At the same time,the management systems of local government bond have been continuously improved in information disclosure,fund management,credit rating and other aspects,laying a solid institutional foundation for the high-quality development of the local government bond market.

While the local government bond market is rapidly expanding and continuing to innovate,there are still many problems at this stage. For instance,marketization needs to be improved,supporting management mechanisms still need to perfect,and regional debt risks cannot be ignored. Currently,China’s development is facing profound and complex changes. In the future,the development of local government bond needs pay more attention to the balance between volume and quality,continue to promote market-oriented reforms,strengthen the whole process management of “borrowing,using,managing,and repaying”,realize the situation of reasonable “borrowing”,efficient “using”,standardized “managing” and orderly “returning”,give full play to the important role of local government bonds in stabilizing growth,shoring up weak spots,adjusting structure,expanding domestic demand,and preventing risks,and finally promote the high-quality development of China’s economy.