1. Urban investment bonds, also known as "quasi-municipal bonds", are local investment and financing platforms for public issuance of corporate bonds and medium-term notes, and most of their investments are local infrastructure construction or public welfare projects. Urban investment bonds originated in Shanghai. In fact, it was a financing method adopted in the development of Pudong New Area at that time. With the successful issuance of this financing model, it has spread rapidly throughout the country. At present, the scale of urban investment bonds is above 3 trillion.
2. Operation mode of urban investment bonds
Urban investment bonds are generally issued through the investment and financing platform of local governments. The names of local investment and financing platforms include urban construction investment company (usually called urban investment company), urban construction development company, urban construction asset management company and so on. Urban investment bonds are generally promised by local governments, with financial subsidies as repayment commitments when necessary, so urban investment bonds are still very popular.
3. Corporate bonds refer to loan certificates issued by joint-stock companies for additional capital within a certain period of time (such as 10 or 20 years). For the holder, it is only a voucher to provide loans to the company, reflecting only an ordinary creditor-debtor relationship. Although the holder has no right to participate in the operation and management activities of the joint-stock company, he can charge the company fixed interest at par value every year, and the order of collecting interest should take precedence over shareholders' dividends. When the joint-stock company goes bankrupt, he can also get back the principal first. Corporate bonds have a long term, generally more than 10 years. Once the bond expires, the joint-stock company must repay the principal and redeem the bond.