The local government will require the underwriters to submit the bid amount and interest rate of bonds through the bidding system of the Ministry of Finance or other electronic bidding systems within a specified time, and determine the bond issuance rate and bond issuance mechanism of the bonds with the winning amount of each underwriter according to the principle of low interest rate to high interest rate.

Local government bonds include general bonds and special bonds. General bonds are government bonds issued for non-profit public welfare projects, mainly from general public budget revenue as the source of debt repayment funds; Special bonds are government bonds issued for public welfare projects with certain income, and the government fund income or special income corresponding to public welfare projects is used as the source of debt repayment.

Scope of general bond investors:

All localities should actively expand the scope of general bond investors and encourage institutional investors and individual investors such as social insurance funds, housing accumulation funds, enterprise annuities, occupational annuities and insurance companies to invest in general bonds on the premise of complying with relevant laws and regulations.

General bond income tax policy:

The general bond interest income obtained by enterprises and individuals shall be exempted from enterprise income tax and personal income tax in accordance with the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Exempting Local Government Bond Interest (Caishui [2013] No.5).

Illegal handling of general bonds:

Registration and settlement institutions, underwriting institutions, credit rating agencies and other professional institutions and personnel should be diligent and conscientious, and strictly abide by professional norms and relevant rules. Those who practise fraud and violate laws and regulations shall be included in the negative list and publicized to the public. Those suspected of committing a crime shall be transferred to judicial organs for handling.

General bond information release:

All localities should promptly report the general bond issuance arrangement, credit rating, information disclosure, underwriting syndicate formation, issuance and payment and other relevant provisions to the Ministry of Finance for the record. Major issues in the issuance and redemption of general bonds shall be reported to the Ministry of Finance in a timely manner. After each issuance of general bonds, the issuance of bonds shall be reported to the Ministry of Finance and the local financial Ombudsman's office of the Ministry of Finance within 15 working days; After the completion of the annual issuance, the annual issuance shall be reported to the Ministry of Finance and the local financial Ombudsman office of the Ministry of Finance within 20 working days.