China slowdown in economic grows under the international financial crisis. To this end, our government hope to expand domestic demand through measures to stimulate economic growth to implemented a proactive fiscal policy. The state department agreed to issue 200 billion yuan bonds issued by ministry of finance agency to match funds to enhance local government arrangements and to expand investment capacity. Enhance the liquidity of municipal bonds, not only can reduce the cost of local government financing and risk , but also promote the development of financial markets.
this paper study the problem of the municipal bond market liquidity shortfall under the international financial crisis and take measures to enhance the liquidity of municipal bonds such as collecting stock market capital gains tax.
