The recently announced new urbanization plan allows local governments to issue municipal bonds. ANBOUND research team believes that such approval on municipal bonds issuance is a big move to solve local governments' financing problems as well as to solve their debt risks. However, there will be many obstacles before adopting the concept into practice. Under a tight schedule, the municipal bond reform that meant to provide fund for the urbanization needs to be prioritized. Meanwhile, those preconditions for municipal bond reform need to be addressed ahead of the schedule.