Local bonds, also known as "municipal bonds", refer to bonds issued by local governments. Their purpose is to raise enough money for public utilities, such as building roads, opening schools and hospitals. The most obvious benefit of local debt is tax preference, which is the most important feature and the most attractive place for investors.

Issuing local bonds does not mean that finance is tight, but local bonds can alleviate financial pressure, continue to maintain economic growth, expand the tax base, open up tax sources and strictly reduce expenditures. In the medium term, we need to find a stable and loose alternative mechanism. Relying on the constantly developing financial market, we will issue local government bonds, convert debt into equity, and establish a fund circulation mechanism for local fiscal debt.

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 maturity of local bonds, like national bonds, is divided into three types: long-term, medium-term and short-term, which is convenient for investors to match the maturity 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.