Abstract: The period of Nanjing Provisional Government is a period that local bond issuance is more active than ever in Chinese history. The issuance of local government bonds during that period is an important fiscal policy measures taken in order to consolidate the revolutionary regime of the new bourgeoisie; it provides a certain material security to defend the gains of the revolution. However, as far as the whole country is concerned, the role of the local government bonds in mitigating the financial crisis faced by the revolutionary government is limited. The results of the majority of local debt issuance are far from the expected objectives. One of the reasons is the policy factor that the central government stopped the issuance of local bonds, the other is the economic factor that the capitalist economy was under??developed, while the fundamental reason lies in the fact that the government bond credit had not been established yet. The issuance of local government bonds during the period of Nanjing Provisional Government can provide some inspiration and reference for the present debt issues faced by China’s local governments.

Key words: Nanjing Interim Government; local government bonds; bonds issuing; fiscal policy