Zhongxin Securities Mingming: In 2026, new measures may be expected to be introduced to address the risks of operating debts such as non-standard debts on financing platforms.

The Central Economic Work Conference pointed out the need to actively and orderly resolve the risks of local government debt, urging local governments to proactively manage their debt and not illegally increase hidden debts. It is important to optimize debt restructuring and replacement methods, take multiple measures to resolve the operational debt risks of local government financing platforms. In response to this, Ming Ming, chief economist of CITIC Securities, believes that under the continuing tone of "restraining the increase and managing the existing hidden debts", the emphasis on operating debt of financing platforms has significantly increased. Ming Ming stated that "optimizing debt restructuring and replacement methods, taking multiple measures to resolve the operational debt risks of local government financing platforms" may imply an expansion of the scope for easing government debt pressure in the future. In addition to the regular replacement of hidden debts, it is expected that new measures targeting operational debt risks such as non-standard debts of financing platforms may be introduced in 2026 to better resolve the risks of local government debt.