What is the government special bond project?

Special bonds are a kind of local government bonds, which refer to bonds issued to raise funds for the construction of specific projects. The difference between special bonds (income bonds) and general bonds (ordinary bonds) is that the former refers to bonds issued to raise funds for specific projects, while the latter refers to bonds issued by local governments to alleviate or solve temporary shortage of funds.

Local government bonds are classified according to the purpose of funds and the source of repayment funds, and can usually be divided into general bonds (ordinary bonds) and special bonds (income bonds). The former refers to bonds issued by local governments to alleviate the shortage of funds or solve the temporary shortage of funds, while the latter refers to bonds issued to raise funds to build specific projects. For the repayment of general bonds, local governments usually use local fiscal revenue as a guarantee, while for special bonds, local governments often use the income obtained after the project is completed as a guarantee.

Bonds are securities issued by debtors such as governments, enterprises and banks in accordance with legal procedures in order to raise funds and promise creditors to repay the principal and interest on a specified date.

Bond is a kind of financial contract, which is a creditor's right and debt certificate issued to investors when the government, financial institutions and industrial and commercial enterprises directly borrow money from the society and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions. The essence of a bond is a certificate of debt, which has legal effect. There is a creditor-debtor relationship between bond buyers or investors and issuers. Bond issuers are debtors and investors (bond buyers) are creditors.

Bond is a valuable security. Because the interest of bonds is usually determined in advance, bonds are a kind of fixed-interest securities. In countries and regions with developed financial markets, bonds can be listed and circulated.

Bonds have the following three meanings:

1. Issuers of bonds (government, financial institutions, enterprises and other institutions) are borrowers of funds.

2. Investors who buy bonds are lenders of funds.

3. The issuer (borrower) needs to repay the principal and interest within a certain period of time.