Pan Gongsheng: Continue to promote local governments to coordinate funds, assets, and resources to resolve debt risks, and divest the government financing functions of financing platforms.

At 3:00 PM on March 6th, the Fourth Session of the 14th National People’s Congress held a press conference on economic topics. People’s Bank of China Governor Pan Gongsheng stated at the meeting that the People’s Bank will earnestly implement the spirit of the Fourth Plenary Session of the 20th Central Committee and the deployment of the “Government Work Report,” and will orderly resolve risks in key areas.

Regarding the resolution of debt risks in financing platforms, the bank will strictly enforce financial discipline, continue to promote local governments to coordinate funds, assets, and resources to resolve debt risks, divest government financing functions from financing platforms, and transform them into market-oriented operating entities. It will also guide financial institutions to reduce liquidity risks and interest burdens of financing platforms through debt restructuring.

In terms of reform and risk mitigation for small and medium-sized banks, the bank will improve early warning mechanisms with hard constraints and establish risk disposal responsibilities that unify rights and responsibilities and are aligned with incentives and constraints. It will support and coordinate with financial regulatory authorities and local governments to safely resolve risks of key financial institutions under market-oriented and rule-of-law principles, and will urge all parties to fulfill their duties and obligations, strictly prevent risk spillover and moral hazard, and promote risk convergence in small and medium-sized banks.

The conference, along with industry regulators and law enforcement agencies such as public security, will continue to crack down on illegal financial activities with a high-pressure approach. (First Financial)