China Seeks to Stabilize Economy and Resolve Debt at Major Financial Conference Amid Property Crisis
National Financial Work Conference in Beijing plans to issue 1 trillion yuan in bonds for infrastructure and disaster prevention, while tackling long-term reforms and immediate real estate issues, amidst concerns over rising local government debts reaching nearly 150% of country's GDP.
- China's National Financial Work Conference is underway with plans to issue 1 trillion yuan ($330 billion) in bonds for infrastructure projects and disaster prevention. The strategy is meant to stimulate growth and counteract the sharp slowdown in housing construction.
- There will be an emphasis on long-term reforms, managing both the immediate and future challenges in the financial sector. Top concerns include massive debts held by real estate developers, local governments and regional banks.
- The conference will also focus on strengthening the leadership and supervision of the Communist Party. This includes a complete reshuffle of economic and financial leadership positions by President Xi Jinping, an effort seen as a move to consolidate power.
- Concurrently, China is grappling with a serious property crisis, with major developer China Evergrande on the brink of default. This situation underscores the urgency of dealing with excessive borrowing and the broader economic fallout.
- Despite these financial strains, the Chinese economy, the world's second-largest, has seen respectable growth, expanding at a 4.9% annual pace in the first nine months of the year. The government's goal is to maintain this momentum whilst responsibly dealing with its ballooning debt.
Washington Post 
Associated Press 
South China Morning Post 
