In recent years，as an important financial measure to stabilize economy and sustain growth，China’s local government bond market expanded rapidly under proactive fiscal policy. Shanghai，the municipality with strong economic and financial strength，had performed well in issuing local government bonds since 2019. In 2020，the pace of Shanghai’s local government bonds slowed down slightly，the issuance cost kept a low level，and the secondary market performs well. Meanwhile，the project income special bond funds continued to expand and were mainly used for transportation infrastructure projects. However，no special bonds were used as project capital，so its leveraging effect on investment growth still had great room to release. For the debt situation，Shanghai’s debt scale was moderate，the debt ratio was relatively low，and the debt risk was controllable. In the next stage，Shanghai should make good use of the local government debt quota，enrich the investment of capital，and rationally promote the application of special bonds as capital，so as to enlarge the leverage effect on infrastructure investment.