How to Crack Down on Local Hidden Debt Concealment and Underreporting? PBOC's Wang Jun Suggests Perfecting Supervision and Accountability Mechanisms

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2026-03-12 13:54:11

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Caixin: A new round of local debt restructuring began in July 2023 and has now lasted over two years. With the support of debt restructuring policies, significant progress has been made in resolving risks in key areas, but some deep-rooted issues are restricting the quality and effectiveness of debt resolution efforts.

During the 2026 “Two Sessions,” Wang Juntan, a National People’s Congress deputy and the head of the People’s Bank of China Henan Branch, proposed suggestions on improving the supervision and accountability system for local implicit debt.

“Were currently in a critical phase of concentrated efforts to resolve local implicit debt risks. It is urgent to improve the supervision and accountability mechanism for local implicit debt from the institutional level, promote local governments to lawfully, comprehensively, and objectively identify, report, and dispose of implicit debt, and firmly safeguard against systemic and regional risks,” Wang Juntan wrote in the proposal.

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