China's Strategic Move: New Debt Management Department Unveiled

China's Finance Ministry has established a new debt-management department to combat local debt risks amid a slowing economy. The department's duties include managing central and local debt, setting debt limits, and overseeing implicit debt risks. Li Dawei is appointed head of the department.

In a bid to address rising local debt risks amid a slowing economic climate, China's Ministry of Finance has announced the creation of a new debt-management department. This strategic move is designed to fortify debt governance across the nation.

The newly formed department will bear the responsibility for establishing and executing systems and policies that oversee central and local government debt. Its roles include formulating regulations, setting debt limits, and managing the issuance and repayment of government borrowings with a keen focus on implicit debt risks.

Li Dawei, appointed as the head of this new department, will be at the forefront of China's concentrated efforts to stabilize financial strains. This follows last year's introduction of a substantial 10 trillion yuan debt package, aimed at augmenting local government finances and sustaining economic growth.

(With inputs from agencies.)