{
  "title": "China's Local Government Bond Market",
  "publication": "IMF Working Papers, September 28, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2018/09/28/china-s-local-government-bond-market-46275",
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  "summary": "Local governments play a significant role in China’s public finance and fiscal operations. The size of local government debt has grown rapidly over the past years, exceeding the stock of sovereign debt in China.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Local governments play a significant role in China’s public finance and fiscal operations.\n- The size of local government debt has grown rapidly over the past years, exceeding the stock of sovereign debt in China.\n- Despite rapid growth, the local government bond market is still underdeveloped.\n- Severe impediments identified include low liquidity, weak credit discipline, and structural fiscal deficit in local governments.\n- Reforms should harmonize tax and regulations, build liquidity, and advance fiscal reforms to tighten off-budget borrowing and address intergovernmental imbalances."
    },
    {
      "heading": "Major Findings",
      "content": "- Rapid expansion of local government debt has led its stock to exceed the stock of sovereign debt in China.\n- The local government bond market remains underdeveloped despite rapid growth.\n- Key impediments:\n  - Low liquidity.\n  - Weak credit discipline.\n  - Structural fiscal deficit in local governments."
    },
    {
      "heading": "Policy Recommendations",
      "content": "- Harmonize tax and regulations to support market development.\n- Build liquidity in local government bond markets.\n- Advance fiscal reforms to:\n  - Tighten off-budget borrowing.\n  - Address intergovernmental imbalances.\n\n---\n\n Content in this bundle\n\n- China’s Local Government Bond Market, WP/18/219, September 2018\n  - China’s Local Government Bond Market, WP/18/219, September 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - China’s Local Government Bond Market, WP/18/219, September 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/09/28/china-s-local-government-bond-market-46275"
    }
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    "Authors: Waikei R Lam, Jingsen Wang",
    "Published: September 28, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484378410.001",
    "Local governments play a significant role in China’s public finance and fiscal operations.",
    "The size of local government debt has grown rapidly over the past years, exceeding the stock of sovereign debt in China.",
    "Despite rapid growth, the local government bond market is still underdeveloped.",
    "Severe impediments identified include low liquidity, weak credit discipline, and structural fiscal deficit in local governments.",
    "Reforms should harmonize tax and regulations, build liquidity, and advance fiscal reforms to tighten off-budget borrowing and address intergovernmental imbalances.",
    "Rapid expansion of local government debt has led its stock to exceed the stock of sovereign debt in China.",
    "The local government bond market remains underdeveloped despite rapid growth.",
    "Key impediments:",
    "Harmonize tax and regulations to support market development.",
    "Build liquidity in local government bond markets.",
    "Advance fiscal reforms to:",
    "**China’s Local Government Bond Market, WP/18/219, September 2018**"
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