Can this debut, which is in line with international standards and regarded as the Chinese version of "municipal special bonds," guarantee the reasonable financing needs of local governments?

What role does it play in curbing the excessive growth of government debt?

What direction will be released to improve local debt management?

The reporter immediately interviewed relevant persons in charge and authoritative experts from the Ministry of Finance and the Ministry of Land and Resources to interpret the important signals behind the reform.

Open the "main door" to regulate land reserve financing. Provincial governments have become the main body of bond issuance. In the context of the issuance of local bonds replacing bank loans as the main channel for local government land reserve financing, the appearance of special land reserve bonds means that the old "land-based borrowing"

The old ways no longer work.

According to the measures, provincial governments and cities under separate state planning will control the "main gate" of bond issuance as the sole issuers of land reserve special bonds.

If the municipal and county-level governments really need to issue bonds, the provincial-level governments will issue them uniformly and on-lend them to the municipal and county-level governments.

At the same time, special land reserve bonds are included in the management of local government special debt limits.

my country's local government bonds are divided into general bonds and special bonds.

Sun Binbin, chief fixed income analyst at Tianfeng Securities Research Institute, said that the pilot issuance of special land reserve bonds and corresponding projects is a major innovation in local debt management, similar to revenue bonds in U.S. municipal bonds.

In the past, the boundaries between general bonds and special bonds were not very clear, but now management is more standardized and in line with international standards.

Relevant persons in charge of the Ministry of Finance and the Ministry of Land and Resources said that the issuance of special land reserve bonds is combined with the promotion of the reform of land reserve financing models in accordance with the law, and is "tailor-made" in terms of issuance amount and term, issuance objects, project management, income returns, etc.

, forming a fund guarantee mechanism with a controllable total amount, dynamic sustainability, and a "front door" legal and standardized way to ensure the reasonable financing needs of land reserve projects, which not only promotes the standardization and healthy development of the land market, but also supports local governments to stabilize growth and make up for their shortcomings.

Lou Jianbo, the Chinese director of the Real Estate Law Research Center of Peking University Law School, said that in the past, when the government reserved land, many of them entrusted development companies to obtain bank loans, which was more influenced by the outside world.

Nowadays, on-demand bond issuance is an institutional innovation, which will help promote the structural reform of the land supply side, ensure the timely and effective supply of land, and promote the long-term healthy development of real estate.

Blocking "crooked doors" to curb disguised borrowing, bond issuance and project implementation are different from the original local government general issuance of special bonds. This issuance of local government land reserve special bonds must be corresponding to project implementation, and requires a stable source of expected debt repayment funds, corresponding

The income from government funds should be able to ensure the repayment of bond principal and interest and achieve a self-balance between project income and financing.

"This requirement truly reflects the essence of special bonds, which is to use project proceeds to repay the principal and interest of the debt." Zheng Chunrong, deputy director of the Institute of Public Policy and Governance of Shanghai University of Finance and Economics, said that the establishment of special bonds corresponding to project assets and benefits

The system is conducive to preventing and resolving special debt risks. For example, the financing risks and bond issuance interest rates of projects in different plots and regions are different. This requires investors to carefully evaluate the risks of each project and not blindly pursue absolute yields.

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Relevant persons in charge of the Ministry of Finance and the Ministry of Land and Resources said that the "front door" issuance of special land reserve bonds will make the land reserve assets used to repay special debts and their expected land transfer income explicit, and mechanically block financing platform companies, etc.

The "back door" and "crooked door" for enterprises to use the name of land reserves to mortgage and guarantee financing on reserved land prevent illegal and illegal borrowings or disguised borrowings, misappropriation of land reserve funds, etc.

"In the past, the old path of local land sales has contributed to hidden debt risks." Sun Binbin said that the issuance of special land reserve bonds means that all other debt borrowing methods are basically not allowed, which is important for better regulating local government financing behavior and preventing

Local government debt risks have a positive effect.

Debt Supervision Upgrades and Refined Management of Special Bonds From the previous issuance of local government special bonds to the issuance of land reserve special bonds for the first time, this marks that my country is accelerating the pace of issuance of special bonds based on the classification of local government fund income items.

In 2014, the State Council issued opinions on strengthening local government debt management, and the implementation of the new budget law in 2015 established the basic framework for local government debt in my country.

On this basis, in recent years, the financial department has continuously improved relevant systems in response to new situations and trends that have emerged, and management has become increasingly refined.

"The introduction of this measure is another refined management optimization based on the existing institutional framework." Zheng Chunrong said that the issuance of special bonds according to the classification of local government fund income items not only shows the coherence of local government debt management policies

The nature and consistency also reflect that the financial department is becoming more mature and in-depth in the management of local debt.

In 2017, my country's government fund revenue is expected to be 4,717.466 billion yuan, of which revenue from the transfer of state-owned land use rights is expected to be 3,856.862 billion yuan, accounting for more than 80%.

The reporter learned that the issuance of special bonds for land reserves means a big step in the reform of issuance of special bonds according to the classification of local government fund income items.