Footnote:
In: Ye, Z., Zhang, F., Coffman, D., Xia, S., Wang, Z., & Zhu, Z. (2022). China’s Urban Construction Investment Bond: Contextualising A Financial Tool for Local Government. Land Use Policy. 105153
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 1, 2022 erstellt
Description:
This paper examines the Urban Construction Investment Bond (UCIB) as a tradable product in the financial market and a financial tool for local government in China. The development of this financial product is contextualised in infrastructure finance and local government debt. The creation of UCIB helps finance infrastructure investment and potentially reveal the relative risks through the secondary market. The spatial distribution of UCIB demonstrates different relative risks of this financial instrument in local conditions. The government uses this financial tool to bridge the emerging capital market and infrastructure finance, and the Chinese financial market now treats UCIB as an emerging asset class. The development of UCIB has sped up the pace of financialisation in China. Although relative risks help investors choose different UCIBs, the overall risk of UCIB cannot be ignored