As an important tool of fiscal policy，local government bonds have fully played the role of stabilizing investment，shoring up weak spots，benefiting people’s livelihood，promoting consumption，expanding domestic demand and preventing risks in recent years. This report summarizes the new changes in China’s local government bonds policy environment in 2021，systematically combs and analyzes the operation situation and existing problems of the local government bonds market，and forecasts the development of local government bonds in 2022. At present，China has entered a new stage of the “14^th Five-Year Plan”，where it faces a series of new situations and problems in stabilizing growth and preventing risks. In 2021，China’s local government bonds has made positive progress in budget management，marketization process，risk prevention and control. In the future，local government bonds will continue to expand and pay more attention to high-quality development. They will go further in optimizing the allocation of funds，improving the efficiency of funds，improving infrastructure，and normalizing strict oversight.