China Takes Action to Address Local Debt Risks and Boost Economy

Chinese financial regulators held a video conference to discuss resolving local debt risks and adjusting policy for real estate loans. The weak financial situation of local governments has hindered the central government's ability to support the economy with fiscal policy. Falling land sales and the property market slump have also impacted local government revenues. Investors are concerned about the ability of some governments to rescue their debt-raising vehicles. The meeting reflects the gathering of a new set of financial policymakers in China's regulatory system overhaul this year.