New development: China’s debt transparency and the case of urban construction investment bonds

Abstract

China’s true level of local government debt is unknown. The central government recently introduced policies to increase transparency and close some of the obscure financial instruments. Urban construction investment bonds (UCIBs) are one of the key instruments affected by these changes. Both positive and negative impacts can be expected. The issues the Chinese government is facing and its policy response provide important lessons for other governments.

Keywords:

• China
• local government investing and financing platforms
• public–private partnerships
• special purpose vehicles
• urban construction investment bonds (UCIBs)

Acknowledgements

This article was sponsored by the Chinese Scholarship Council.

Additional information

Notes on contributors

Lan Bo

Lan Bo is an Associate Professor in Sunwah International Business School, Liaoning University, China, and a Visiting Scholar at De Montfort University, UK.

Fred C. J. Mear

Fred C. J. Mear is a Principal Lecturer in the Accounting and Finance Department at De Montfort University, UK, and a Visiting Professor at Liaoning University, China.

Jingchi Huang

Jingchi Hang is a Lecturer in the School of Political Science and Public Administration, Wuhan University, China.