Second, urban investment bonds are defined by the issuer, covering most corporate bonds and a small number of non-financial corporate debt financing instruments. Generally speaking, compared with industrial bonds, they are mainly issued for investment purposes such as urban infrastructure. Urban investment bonds, also known as "quasi-municipal bonds", are local investment and financing platforms for public issuance of corporate bonds and medium-term notes, and their main businesses are mostly local infrastructure construction or public welfare projects. From underwriters to investors, people involved in the bond issuance process regard it as local bond issuance. With the rise of "new debt", corporate debt has recently become the hottest investment in the bond market. At present, the yield level is at a historical low level, and the bond market as a whole has not gone out of consolidation. With the advantage of high interest rate, corporate bonds reproduce the hot issue scene of "one ticket is hard to find, one ticket is hard to find" in the heyday of corporate bonds. According to wind information's statistics, the number of corporate bonds issued in February has approached the "blowout level" of last year's 10, and medium-term notes have become the most active variety of new bonds issued in that month. According to the latest statistics of Central Securities Depository and Clearing Co., Ltd., in 2009,1-1,local corporate bonds issued nationwide totaled19765438+33 million yuan, most of which were urban investment bonds called "quasi-municipal bonds". This scale is equivalent to 200 billion yuan of local debt issued by the state in 2009. Some urban investment bonds are "over-packaged", which intensifies the risk.
Question 2: What does local debt replacement mean? Replace what with what? Local debt refers to local * * * borrowing from banks, which can be general loans or local * * * bonds.
Local debt replacement is to convert old debt into new debt. There are several ways.
Exchange new debts for old debts, such as 6,543,800,000 yuan in arrears and 6,543,800,000 yuan in interest, and pay off the old debts by borrowing 654,380,654,380,000 yuan from the original bank. Due to the recent interest rate cut, the new debt will be cheaper than the old debt, thus effectively delaying the repayment pressure.
Central debt is exchanged for local debt, for example, the local government owes100000 yuan and the interest100000 yuan. The central government lends money from banks to local governments, and then the new debt becomes the central government.
Every place is different, mainly depending on local policies. Anyway, banks are basically losing money, so many banks are reluctant to make replacements.
In the final analysis, the local government can't afford the money, so we must find a way to solve this problem.
Question 3: What does China local debt mean? Local debt can be divided into explicit debt and implicit debt. Explicit debts generally include loans from foreign and international financial organizations, national debt loans, agricultural comprehensive development loans, special loans to solve local financial risks, arrears of wages, losses in old and new accounts of state-owned grain enterprises, and arrears of basic pensions for enterprise retirees. In addition to explicit debts, they are often manifested as unpaid expenses payable. Implicit debts include local guaranteed debts, guaranteed foreign debts, bad debts of local financial institutions, and social security fund gaps. If the financial institution is liquidated, the local * * * will bear the loss of assets. These debts lack an effective and unified supervision and management system and have a strong concealment, which has become the main risk area of local debt risk in China.
Overview of local debt risk
The so-called local debt risk refers to the possibility that under the influence of various uncertain factors, local financial funds suffer losses or financial expenditures are difficult, endangering the normal operation and function exercise of local political power. Local debt risk refers to the possibility that due to various subjective and objective factors, especially some uncertain factors, the normal expenditure of local finance is difficult, the local finance is difficult to operate normally, the local economy is stagnant or even declining, and social stability is destroyed. The local financial risk has the characteristics of wide induction space, fast transmission speed, strong concealment and great harm.
Edit the reasons for local debt risks in this paragraph.
The formation of local debt risk in China is the result of disharmony in the distribution of local financial power and administrative power, imbalance in lending willingness and lending constraints, and has a unique generation logic and development path. First of all, the contradiction between excessive local government power and limited financial power during the transition period is the most important and fundamental reason for the formation of local debt risk. Secondly, the contradiction between strong local investment impulse and insufficient investment constraints leads to high borrowing and investment. Thirdly, the imperfect public investment system and the high entry threshold of private capital make the investment risks continuously concentrated in local areas, and the central government's transfer payment policy is not in place, which is also responsible for the formation of local debt risks. Districts and counties lacking financial resources have always been typical "food finance" and "begging finance", with heavy debts.
Edit the local debt risk statement in this paragraph.
The degree of local financial risk depends on the risk factors and the degree of harm, and depends on the strength of local finance, that is, the ability to resist risks. Due to the great differences in the level of economic development in different regions of China, the degree of local financial risk and the ability to resist risks are also different. In the provinces with relatively backward economic development, the problem of local financial risks is relatively prominent, and the forms of risks are diverse; Provinces and regions with relatively high economic development level have relatively strong ability to resist financial risks, and the forms of risk are relatively concentrated. From our investigation, local financial risks mainly take the following forms:
Debt risk
According to the risk matrix of Hana Polackova, an economist of the World Bank, * * * debt can be divided into * * * direct debt and * * * contingent debt. The former refers to the responsibilities and obligations that * * * cannot avoid under any circumstances; The latter refers to the responsibilities and obligations that * * * must undertake and perform under certain conditions. These responsibilities and obligations are included in the functions of * * * *, but in the form of expression, some are explicit and some are implicit. Therefore, * * debt can actually be divided into four categories: explicit direct debt, implicit direct debt, explicit contingent debt and implicit contingent debt, and there are four corresponding * * debt risks: explicit direct debt risk, implicit direct debt risk, explicit contingent debt risk and implicit contingent debt risk. Local financial risk 1. Explicit direct debt risk The explicit direct debt of local finance mainly includes debt caused by national debt borrowing, debt caused by wage arrears, grain loss and township financial debt. (1) The national debt loan funds will be implemented from 1998. Issued by the Ministry of Finance and lent to local governments, it is mainly used for local infrastructure construction, and the part directly used and repaid by local financial departments constitutes the explicit direct debt of local finance. Judging from the areas we investigated, the area with the least income from convertible bonds in 2000 1998 was Jiangxi Province, which was 2,888,840,000 yuan. The largest is Shanghai, which is 5,406.55 million yuan. (2) Debts arising from wage arrears. In recent years, it has become a common phenomenon in China that administrative institutions are in arrears with employees' wages. For local governments, wage arrears are undoubtedly explicit direct debts. ......& gt& gt
Question 4: What do corporate bonds and local bonds mean? Corporate bonds, corporate bonds of listed companies and convertible bonds all belong to different types of bonds. Local debt is from the perspective of the issuer. At present, China's local debt can be divided into two types, one is the bond issued by the Ministry of Finance on behalf of local governments; In addition, it can also be understood as bonds issued by financing platforms controlled by local governments. For example, bonds issued by enterprises in the name of urban investment, urban construction and infrastructure construction can all be called corporate bonds, but from the main point of view, their bonds are also regarded as local bonds. In addition to borrowing money from banks (indirect financing), issuing bonds and stocks is a direct financing method for enterprises. Generally speaking, enterprises openly borrow money from everyone.
Question 5: What do you mean by issuing local bonds? Local bonds, also known as local bonds and municipal bonds, are widely used in developed market economy countries. They have dual innovation characteristics: innovation in financial management and debt management systems, and innovation in financial markets and financial instruments.
Also known as "municipal bonds", it refers to bonds issued by local governments, whose purpose is to raise enough funds for building roads, running schools, hospitals and other public utilities. The most obvious benefit of local debt is tax preference, which is the most important feature and the most attractive place for investors. Generally, local debt has a fixed interest rate, so the income is stable, and generally speaking, the credit of local debt is relatively high. The term of local bonds, like public bonds, is divided into three types: long-term, medium-term and short-term, so as to facilitate investors to match the term structure of bonds and ensure a complete high-yield level. Local bonds are divided into ordinary bonds, income bonds, industrial income bonds and limited liability bonds according to the issuing department and income level.
Question 6: What do you mean by directional underwriting of local debt? The so-called "targeted underwriting" means that which bank borrows local debt will go to which bank to issue replacement bonds. Allowing local bonds to be included in the scope of collateral means that holders of local bonds such as commercial banks can obtain liquidity from the central bank through pledged refinancing without waiting for the maturity of bonds. On the one hand, after being included in the scope of collateral, banks can obtain relatively low-cost funds through refinancing, which can further solve the problem of insufficient demand for house purchase caused by rising costs at the debt end; On the other hand, it is conducive to improving liquidity and credit supply.
Question 7: What is the difference between local bonds and corporate bonds? Local debt is a relative concept, relative to national debt. Corporate bonds refer to bonds issued by enterprises with different subjects. Local * * * bonds, mainly corporate bonds issued by enterprises controlled by local * * *, are guaranteed by * * * tax.
Question 8: Who can briefly explain what the Ministry of Finance means by replacing local debt? Why do you want to replace it? I haven't understood it for a long time. This is only part of the 3 trillion replacement plan. Some foreign media believe that this is only a matter of delay. Some western analysts believe that this has not significantly reduced local debt, nor eased the debt problem of non-financial institutions in China, which is even more dangerous because of its huge scale. Local debt swap can correct the previous high local debt interest rate, and China can curb the growth of this kind of debt.
Bond swap will reduce the non-performing assets of banks and open up a new way to alleviate serious systemic financial risks. Whether commercial banks or central banks buy in practice, the positive significance for the whole banking industry lies in that by replacing high-interest short-term loans with high credit risk with long-term bonds with low interest rates, the medium-and long-term security benefits of banks can be locked in, and the actual and potential toxic assets can be reduced, thus curbing the recent surge in the non-performing loan ratio of banks and improving the valuation expectation of bank stocks to some extent.
This will be a direct catalyst for detonating banking stocks.
I hope you can adopt it.
Question 9: What does local debt securitization mean? At present, local governments are unable to repay local debt, so * * * will package this part of local debt and replace it through the securities market, and finally let investors pay the bill!