China’s Urban Construction Investment Bond: Contextualising a Financial Tool for Local Government

Zhen Ye, Fangzhu Zhang, D' Maris Coffman, Senmao Xia, Zhifeng Wang, Zhonghua Zhu

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)
229 Downloads (Pure)


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.

Original languageEnglish
Article number105153
JournalLand Use Policy
Early online date13 Nov 2020
Publication statusPublished - Jan 2022

Bibliographical note

NOTICE: this is the author’s version of a work that was accepted for publication in Land Use Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Land Use Policy, 112 (2020)

DOI: 10.1016/j.landusepol.2020.105153
© 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International


  • China
  • Financialisation
  • Infrastructure finance
  • Relative risks
  • Urban construction investment bond

ASJC Scopus subject areas

  • Forestry
  • Geography, Planning and Development
  • Nature and Landscape Conservation
  • Management, Monitoring, Policy and Law


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