What is the relationship between city investment company and city investment bond? What is the relationship between city investment bonds and corporate bonds?

1. The local government set up a city investment company, and borrowed money from banks in the name of the city investment company to support the construction of local governments. City investment bonds are bonds issued by city investment companies. Although city investment companies issue city investment bonds, most of them are unprofitable, belonging to public institutions or wholly state-owned companies, which realize profits through government subsidies and belong to special market operators with government nature.

2. Corporate bonds are approved by the National Development and Reform Commission, including urban investment bonds and industrial bonds. Urban investment bonds are used for urban infrastructure construction and corporate bonds are used for enterprise projects. Urban investment bonds are defined by the issuer, covering most corporate bonds and a small number of non-financial corporate debt financing instruments. Generally speaking, compared with industrial bonds, they are mainly issued for investment purposes such as urban infrastructure.

Extended data

Urban investment bonds originated in Shanghai. 1992, in order to support the construction of Pudong New Area, the central government decided to give Shanghai five ways to raise funds, one of which is to issue 500 million yuan of Pudong New Area construction bonds every year from 1992 to 1995. 1992, the scale of bonds invested by First City is 500 million yuan.

In September 2006, Anhui Hefei Construction Investment Holding (Group) Co., Ltd. successfully issued the first bond in the province, with imitators all over the province. However, the number of issues in Anhui Province still lags behind that in Zhejiang and Jiangsu.

Due to the large loan demand of local governments, the scale of "urban investment bonds" expanded rapidly in 2009-during the four years from 2005 to the end of 2008, the total amount of "urban investment bonds" was only 654.38+058.5 billion yuan, while in the first eight months of 2009, 64 "urban investment bonds" were issued, raising 84.55 billion yuan.

Resources Baidu Encyclopedia-Corporate Bonds

Refer to Baidu Encyclopedia-Urban Investment Bonds

Reference Baidu Encyclopedia-City Investment Company