In 2013, the State of Council allows the local governments to issue an appropriate amount of pilot bonds in Shanghai, Zhejiang, Guangdong, Shenzhen, Jiangsu and Shandong. Anbound research team highlighted that the expansion of pilot bond indicates that the federal government is compromising with the local government under the new circumstances. The pilot bond would create demonstration effect among local governments and henceforth trigger more local governments to issue their own bond.