By sorted out the issuance data onto special bonds between Chinese local governments from 2015 to 2020,studied the influence of local finance and capital market characteristics on the pricing of special bonds,and further explored the pricing differences between special bonds between project revenue and ordinary special bonds.The empirical study finds that the characteristics of local government special bonds themselves,local financial economy and capital market all reflect the impact on bond pricing.In particular,an increase in the market money supply reduces the pricing differential between project income bonds and ordinary special bonds,while interbank lending rates increase the differential.The regional results show that the budget of government-managed funds of central and western China has a strong credit guarantee ability for ordinary special bonds,while the weak credit guaranteed ability for project income bonds increases investors’concerns about self-balance of expected income financing.By studding the factors influencing the pricing of special bond issuance,in order to provide reference to perfecting the special bond issuance system and reducing the debt risk and financing cost of local governments.