Abstract
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 language | English |
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Article number | 105153 |
Journal | Land Use Policy |
Volume | 112 |
Early online date | 13 Nov 2020 |
DOIs | |
Publication status | Published - 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
http://creativecommons.org/licenses/by-nc-nd/4.0/
Keywords
- 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