Analysis on Risk Influencing Factors of Local Urban Investment Bonds

摘要

Urban investment bonds are another financing method designed by local governments in China to avoid the legal restrictions of urban economic construction, especially urban infrastructure construction under specific economic environment. Although the issuance of urban investment bonds has eased the financing difficulties of local governments to a certain extent, the credit risk of urban investment bonds has gradually emerged due to the rapid increase in the number of urban investment companies and the expansion of the debt scale. In the borrowing process, not only the local government has expanded the land finance, but also the financial transparency has decreased, which will affect the regional economic development level, the urbanization process and the financial and credit status of the city investment companies themselves. Therefore, first of all, the local government should promote the improvement of the tax system, reduce the government's reliance on land finance, actively enhance the government's financial transparency, reduce the information asymmetry between bond issuers and market investors, and reduce the debt risk. Secondly, for the sake of stable growth of local economy, over-investment and development of cities should be avoided. Finally, standardize enterprises to increase credit guarantee, avoid false credit guarantee, and improve the system of public disclosure of corporate financial risk information and the role of third-party market capital in strictly guarding the market, providing a more reliable capital guarantee for the issuance and operation of China's bond market.