China’s key financial conference to focus on resolving debt, strengthening supervision amid property crisis
- National financial work conference set to start on Monday, with debt risks and strengthening the supervision of the Communist Party to be top of the agenda
- Beijing urged to manage systemic risk by containing the dangers from the property sector and local government financing vehicles (LGFVs)
China’s top leaders are expected to gather in Beijing for a key financial conference this week, with debt risks and strengthening the supervision of the Communist Party set to be top of the agenda, sources familiar with the details said.
The closed-door, two-day national financial work conference is scheduled to start on Monday, one source said.
China’s top leaders, state executives, regulators and senior bankers have gathered every five years since 1997 for the conference focusing on financial policies and development. The last national financial work conference was held in 2017.
“[The conference] will primarily focus on resolving debt. At the moment, the most important thing is to resolve the debt problems,” one of the sources said.
“Of which the core is the fact that local governments are out of money. And the core reason for that is the downturn in the real estate market.”
Another source added that strengthening the leadership of the party, as well as financial discipline in the areas of local government debt, would be given emphasis at the conference.