The Ministry of Finance's 1H2026 fiscal policy implementation report said it
will continue the package of debt-to-bond conversion measures, accelerate
disposal of existing implicit debt, and strictly prevent sham conversions and
new hidden liabilities, while promoting exit, reform and transformation of local
financing platforms. The ministry said it will support steady grassroots fiscal
operations, implement tiered guarantee responsibilities, strengthen operational
monitoring and treasury cash scheduling to secure the grassroots "three
guarantees" baseline, and coordinate existing policies to assist in clearing
outstanding payables to enterprises.
