Local debt trading so cold what to rethink

⊙ yellow zhi zi ⊙ yellow zhi zi 4 billion yuan total of 2009 years of Hebei provincial government bonds traded on the Shanghai Stock Exchange May 7, as of the end of the day, the bond has not been closed for all days. In the same period, the government bonds of the Inner Mongolia and Shaanxi provincial governments also failed to escape the vicious circle of "0 exchanges".　　Local debt is facing the embarrassment of the first-tier market enthusiasm decline, the two-level market transaction light. The current "cold" of local debt turnover, with the previous local government for local debt issued by the "hot", formed a great contrast, the reason is worth pondering and the residual except for some experts analysis, local debt and the current market alternatives to financial products "no characteristics", its nominal interest rate than the fixed deposit rate is lower,　　Therefore, it is difficult to attract investors and other factors, I am afraid, and the current tax benefits distribution system, the public credibility of local government and so on. Since the implementation of the tax-sharing in 1994, the local government revenue "size" is getting smaller and bigger, so that the local financial resources and its power increasingly do not match. Especially in some underdeveloped regions of the Midwest, local finance is stretched, and some places are even heavily indebted. Although the Ministry of Finance made the "2009 Local government bond budget management measures" stipulates: Local bonds issued by the central government, after the expiration of the Ministry of Finance Unified agent reimbursement. However, under the current tax-sharing system, the distribution of revenue benefits is central to the "Big Head", where the "small heads", even if the financial crisis receded, domestic economic recovery, in the "small-headed" local finance can not grow up in the short term, out of the dilemma.　　As a result, the public is still sceptical about the ability of local governments to repay their debt. 17 make clear: to establish a "financial and power matching" tax benefit distribution system. Does this mean that the financial relationship between the central and local governments will be improved through the adjustment of tax-sharing, increasing the proportion of local taxation, strengthening local financial resources, and matching the government's financial resources with its powers?　　If so, it would help local finance to emerge from its current predicament and improve its solvency, and the public might not be unduly sceptical about local solvency. Although the "2009 local government bond budget management measures" stressed that the local government bond budget funds are mainly used for the central investment in local public welfare construction projects and other difficult to attract social investment in the construction projects, should not be allocated for recurrent expenditure. But because some local governments in the compressed administrative operation cost, suppresses "three public consumption", enlarges the public service project and the Livelihood welfare improvement investment strength is not big enough, has the certain disparity with the public expectation, therefore the public buys the local debt The enthusiasm also is not high.　　From the media recently exposed some local government in large quantities to buy Maotai, "95 of the" smoke than ever more hot, public funds to travel abroad and no prohibit, etc. In a sense, the local government's credibility and local bond turnover is proportional. Guarantee the issuing of local debts even under the strict supervision of the relevant departmentsThe money will not be allocated to recurrent expenditure, but as long as some local governments have not fundamentally reversed the high cost of administrative operation, "Three public consumption," a large waste of public services and people's livelihood to improve the lack of investment situation, the embarrassment of local debt transactions will continue to be ignored.