MNI BRIEF: China Vows To Resolve Local Debt Risks

China will establish a long-term mechanism to prevent and resolve local debt risks, improve the supervision of real estate enterprises and their capital, in order to comprehensively strengthen financial supervision, Xinhua News Agency reported Tuesday following the conclusion of the two-day close-door Central Financial Work Conference in Beijing.

It is necessary to handle the risks of small and medium-sized financial institutions in a timely manner and establish a government debt management mechanism consistent with high-quality development, as well as improve the macro-prudential management of real estate finance while meeting reasonable financing needs of all types of property developers, the meeting said.

There are still many hidden economic and financial risks. The quality and efficiency of financial services to the real economy needs to be upgraded, while financial supervision and governance remain weak, the meeting noted.