The Central Economic Work Conference pointed out that local government debt risks should be actively and orderly resolved, all regions should be urged to take active debt, and that hidden debts must not be added in violation of regulations. Optimize debt restructuring and replacement methods, and take more measures to mitigate the operating debt risks of local government financing platforms. In response, the chief economist of CITIC Securities clearly believes that under the continuing trend of “curbing growth and savings” of hidden debt, the importance placed on operating debt of financing platforms has increased markedly. It clearly stated that “optimizing debt restructuring and replacement methods and taking more measures to resolve the operating debt risks of local government financing platforms” may mean that the scope of mitigation of pressure on government debt will expand in the future. In addition to conventional hidden debt swaps, new measures targeting operating debt risks such as non-standard debt on financing platforms may be expected to be introduced in 2026 to better mitigate local government debt risks.

The Central Economic Work Conference pointed out that local government debt risks should be actively and orderly resolved, all regions should be urged to take active debt, and that hidden debts must not be added in violation of regulations. Optimize debt restructuring and replacement methods, and take more measures to mitigate the operating debt risks of local government financing platforms. In response, the chief economist of CITIC Securities clearly believes that under the continuing trend of “curbing growth and savings” of hidden debt, the importance placed on operating debt of financing platforms has increased markedly. It clearly stated that “optimizing debt restructuring and replacement methods and taking more measures to resolve the operating debt risks of local government financing platforms” may mean that the scope of mitigation of pressure on government debt will expand in the future. In addition to conventional hidden debt swaps, new measures targeting operating debt risks such as non-standard debt on financing platforms may be expected to be introduced in 2026 to better mitigate local government debt risks.