In the future, there will be two kind of changes in the issuance of local government debt: -

Firstly, the difference between the interest rate of the local government debt and the treasury bill rate will increase.

Secondly, there will be huge difference between the price of the bonds issued by different local governments and the relationship between the pricing of the bonds and the financial capability of the local governments will become more obvious.

ANBOUND's scholars point out that following the differentiation in the ways the local governments handle their debt, the development environments for different areas will see differentiation too.

The regions with good economic development will have an edge in the new development environments whereas the heavily indebted regions with poor economy will become the "new collapsed zone" in China’s regional economic development.