The recent discrimination and clean of China's local debt by Ministry of Finance is shocking the market. For example, the "2014 Tianning Debt" and “2014 Urumchi Investment Company Debt” have been cancelled the qualification as governmental special debt. Based on ANBOUND research team’s studies, we believe that the two events indicated that the caliber of local debt discrimination is likely to be smaller than expectation, which would affect the government’s refinance, and further produce market worries on local debt risks.