Lan Fuan, Minister of Finance of China, said at a press conference held by the State Council Information Office on October 12 that it is planned to increase the debt limit on a large scale at one time, replace the existing hidden debt of local governments, and increase support for local governments to resolve debt risks. The relevant policies will be explained in detail to the public after the relevant legal procedures are fulfilled. This policy is the strongest measure to support debt reduction in recent years, which will greatly reduce the pressure on local governments and free up more resources to support economic development.

On the basis of accelerating the implementation of the determined policies, the Ministry of Finance will launch a package of targeted incremental policy measures in the near future around stabilizing growth, expanding domestic demand and reducing risks. The Ministry of Finance will issue special treasury bonds to support large state-owned commercial banks to supplement capital.