China's Local Authorities Struggle with Debt Crisis as Financial Meeting Seeks Solutions

China's top leaders are set to gather for a two-day national financial work conference in Beijing, focusing on resolving debt and strengthening supervision amid the property market crisis. The conference will address the issue of local governments being out of money, primarily due to the downturn in the real estate market. The leadership of the Communist Party and financial discipline in local government debt will also be emphasized. The conference aims to manage systemic risk, contain risks from the property sector and local government financing vehicles (LGFVs), and prevent these problems from causing systemic risks. The central government may have to bail out local authorities, and there could be clearer rhetoric on creating a top-down financial regulatory framework.