Issuance and replacement of local government debts has drawn a lot of attention from domestic market since this year. Recently, the first replacement of local government debts in Jiangsu Province has been successfully completed. In the opinion of ANBOUND think tank scholars, issuance and replacement of local government debts has just started. Whether it will succeed depends on the government's administrative promotion and coordination ability. The issuance and replacement of local debts won’t be able to form an effective market in short term.