Experts recommend increasing the issuance of local government bonds by 1 trillion yuan in the fourth quarter.

In order to prevent and resolve the hidden debt risks of local governments, the central government's 10 trillion yuan plan to replace the stock of hidden debts of local governments has been rapidly implemented, with over 5 trillion yuan of hidden debts already replaced by local governments. On September 23, Yuan Haixia, the Dean of the CCXI International Research Institute, suggested at a seminar on China's macroeconomic hot issues that the current fiscal policy could be more proactive. For example, she proposed increasing the issuance of 1 trillion yuan of local government bonds in the remaining time this year within the aforementioned 10 trillion yuan debt conversion quota to replace the stock of hidden debts, in order to improve local vitality and alleviate local liquidity pressure. Yuan Haixia stated that with weak growth in local fiscal revenue, the current liquidity pressure on local finances is intensifying, with some regions facing significant interest payment pressures.