China Vows to Tackle Property and Financial Risks Amid Economic Challenges

China is focusing on controlling risks in the property sector, local government debt, and small financial institutions to restore confidence in its financial system. Vice Premier He Lifeng emphasized preventing systemic risks and promoting high-quality development, with increased oversight over the financial sector.

China will control the intertwined risks in the property sector, local government debt and small local financial institutions, Vice Premier He Lifeng said on Tuesday.

China is seeking to restore confidence in its financial system, which is mired in a property crisis and mounting local government debt, as the economy faces a host of challenges. The country will also seek to prevent systemic risks and crack down on illegal financial activities, state broadcaster CCTV quoted He as saying.

"At present, we must comprehensively and strictly control the intertwined risks in the real estate sector, local government debt and small and medium-sized local financial institutions, and crack down on illegal financial activities," He was quoted as saying at a financial meeting. China will promote high-quality economic and social development, stepping up financial support for key strategic sectors, He said.

China's ruling Communist Party tightened supervision over the nation's massive financial sector through a broad restructuring of both party and state entities last year.