The nation's lawmakers have approved a bill to raise the ceiling on local government debt by six trillion yuan to replace existing hidden debts, an official said on Friday.

The nation's top legislative body, the standing committee of the National People's Congress (NPC), approved the bill during a meeting from November 4 to 8, said Xu Hongcai, vice chairman of the financial and economic affairs committee of the NPC.

Xu, who made the remarks at a press conference in Beijing, added that the debt swap would help resolve local debt risks.

At the same press conference, Finance Minister Lan Foan said "hidden debt" of local governments stood at 14.3 trillion yuan at the end of 2023, which authorities planned to trim to 2.3 trillion yuan by 2028.

Lan also said authorities will issue policies to support state sector purchases of unsold apartments and reclaim undeveloped residential land from property developers, as well as replenish the capital of big state banks, but did not give details on the size or timing of those measures.

Broadcaster CCTV described the move as China's "most powerful debt reduction measure in recent years", adding the move would free "up space for local governments to better develop the economy and protect people's livelihood".

At the closing NPC meeting, lawmakers also voted to adopt a preschool education law, and revised laws on anti-money laundering, the protection of cultural relics, and mineral resources, as well as an energy law.

President Xi Jinping signed seven presidential orders to promulgate the laws and the decisions. (Agencies)
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Last updated: 2024-11-08 HKT 17:39