Credit Ratings and financialized political capitalism in a Chinese Development zone

China’s state driven urbanization and the revenues earned through conversion of land from rural (legally non- commodified) to urban (legally commodified) status have been studied intensively. What makes this new urban land valuable is less discussed in the context of financializaton. Through a study of bond financing in one of China’s “national level new areas”, Tianfu New Area, on the outskirts of Chengdu, south-western China, this paper argues that financialization is not only created through conversion of land, but also through the capitalization of perceived political favour. The link between state and market is frequently conceptualized as consisting of non- transparent vested semi-corrupt networks between the state and well-connected state owned or private enterprises. We argue that an additional link exists between state and market through financialized political capital- ism. This is a system where certain narratives and interpretations of policy suggest an implicit guarantee of bailouts of those debtors who are perceived to be politically important. These narratives and perceptions of political ranking become factors in determining credit ratings and issuing bonds both on the Chinese and the global market and thus the creation of capital based on real estate in China.