The Third Session of the 14th National People’s Congress (NPC) opened this morning (5th) at the Great Hall of the People. In his government work report to the assembly, Chinese Premier Li Qiang stressed that the government will refine and implement a comprehensive debt resolution plan, optimize evaluation and control measures, dynamically adjust the list of high-debt-risk regions, and support the creation of new investment opportunities.

Following principles of scientific classification and precise replacement, efforts will focus on managing hidden local government debt. The government debt management system will be improved to adamantly curb impulses for irregular borrowing. Additionally, the government will accelerate the divestment of financing functions from local financing platforms, promoting their market-oriented transformation and mitigating debt risks.

The report highlighted the need to persistently stabilize the real estate market and halt its decline, adopting city-specific policies to reduce restrictive measures and amplifying efforts to renovate urban villages and dilapidated housing. This aims to fully unleash the potential demand for both essential and upgraded housing.

The government will optimize urban spatial structures and land use patterns, reasonably control the supply of new real estate land, and revitalize existing land and commercial properties. It will promote the acquisition of existing commercial housing, granting city governments greater autonomy over acquiring entities, pricing, and usage.

The scope of re-lending for affordable housing will be expanded. The real estate financing coordination mechanism will continue to play a key role, ensuring the delivery of pre-sold homes and effectively mitigating the risk of debt defaults by property developers.