Do a good job in risk prevention and control in key areas such as debt and real estate!

At the meeting of the State-owned Assets Supervision and Administration Commission, the more eye-catching content was that the meeting emphasized the need to pay close attention to the risks of local financing platforms and do a good job in risk prevention and control in real estate and other fields. This has been made a priority at the beginning of this year, perhaps because the situation of LGFVs has been deteriorating in the past few years.

In the development of local governments in the past few decades, especially in the development of land finance, local government financing platforms have played a major role, but at the same time, the scale of debt has continued to increase, which has accumulated huge risks. In the past few years, the real estate market has been in recession, and land finance is unsustainable, which has exacerbated the risk of local debt.

Although there are various favorable policies for real estate nowadays, if the real estate market situation does not improve, the risk of debt risk outbreak is indeed relatively high.