The study on the relationship between financial statements and local debt data of listed manufacturing companies in China from 2015 to 2021 shows that an increase in the level of local debt can significantly improve the total factor productivity of Chinese manufacturing enterprises. From the mechanism analysis, it is found that the issuance of local bonds promotes the improvement of total factor productivity of manufacturing enterprises by alleviating financing constraints and stimulating enterprises to increase R D investment. However, the issuance of local bonds is not conducive to the gathering of high-quality talents, thereby inhibiting the improvement of total factor productivity of manufacturing enterprises. Heterogeneity analysis found that special bonds can significantly improve the total factor productivity of manufacturing enterprises compared to general bonds, and the role of local bond issuance in improving the total factor productivity of large and medium-sized enterprises, state-owned enterprises, non-labor-intensive enterprises, economically developed regions, and low debt level areas is more significant. Further research found that there is an inverted U-shaped relationship between the scale of local bond issuance and the high-quality development of enterprises, After the local bond level exceeds the extreme value of 0.0773, the issuance of local bonds will inhibit the high-quality development of enterprises. The research conclusion has important practical significance for adhering to the policy of promoting economic development and high-quality development of enterprises through local bond issuance.