Financial Risks of Local Government Special Bonds:Generation Mechanism and Regulation Path
Special bonds, as the primary form of local government's debt issuance in China, deviate from the fiscal logic of"the project system"in practice, and its role in adjusting public and fiscal risks and in isolating fi-nancial and fiscal risks is facing the dilemma of attenuation, which may lead to systemic financial risks. The reg-ulation of financial risks of special bonds should be based on project risk governance and proceed in an orderly manner following the logic of systemic interaction. Firstly, it is necessary to fully match the issuance authority of special bonds with local development rights, to coordinate debt-raising authority through optimizing the"proxy issuance - use"system, and then to regulate the fiscal hedging mechanism of public risks from the source of special bond issuance. Secondly, it is essential to promote the deep coordination between local government's debt-raising authority and project investment authority, to solidify investment responsibilities through regulat-ing the"management - repayment"system, and then to establish a mechanism to prevent project risks from evolving into fiscal risks throughout the use of special bonds. Finally, it is also required to implement dual coor-dination between the national supervision of special bonds and market discipline, to realize multi-party co-gov-ernance through perfecting the"supervision–participation"system, and then to design a defense mechanism against the trend of financialization of fiscal risks in the weak link of special bonds.
local government bondslocal government special bondsproject systemproject riskfinancial risk
万方数据
维普
