China Vows Enduring Local Debt Cleanup at Key Policy Meeting

  • Beijing flags risks from local debt, small banks, real estate
  • China pledges continued opening to attract foreign investment
Xi JinpingPhotographer: Pool/Getty Images AsiaPac
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China vowed to set up a long-term mechanism to resolve debt risks tied to local authorities and signaled willingness to expand central government borrowing as it concluded a twice-a-decade policy meeting.

The two-day Central Financial Work Conference, attended by President Xi Jinping, also stressed the need to consolidate Communist Party control over the financial system and provide more funds for innovation, hi-tech manufacturing, green technology and small-to-medium sized companies.