China is fully confident of its ability to fend off systemic debt risks, while it continues to strengthen control over local government debt, Finance Minister Xiao Jie said on Wednesday.
China will reasonably set quotas on local government debt issuance and keep cracking down on “chaotic” debt financing, Xiao said at a press briefing held during China’s annual parliament meeting.
Local government finances and burgeoning debt levels in China have been a source of concern for policymakers as the central government looks to remove expectations of implicit guarantees for government financing vehicles.
