China's debt risks are generally under control, and the debt risks of local governments are being effectively alleviated and managed following the introduction of a raft of effective policies, said a senior official.
The remarks, made by an official from the Office of the Central Committee for Financial and Economic Affairs, came after last week's tone-setting Central Economic Work Conference.
China's government debt ratio is around 70 percent, a relatively low level in the world.
For the next year, more proactive and impactful macro policies should be implemented to sustain the upward trend of the economy and create a favorable macro environment to guard against and defuse the debt risks of local governments, according to the official.
Efforts will be made to coordinate reforms on fiscal and taxation systems and place more fiscal resources at the disposal of local governments, so as to provide institutional support for defusing local government debt risks.
The official also pledged resolute measures to curb debt financing that violates laws or regulations, cautioning that new illegal debts must be avoided while defusing existing debt risks.
The meeting urged enhancing the innovation capabilities and leading role of areas with economic development advantages, supporting major economically developed provinces to play major roles, and encouraging other regions to leverage their local conditions and advantages.
To support major economically developed provinces in better shouldering greater responsibilities, China will expand the usage scope of special bonds, delegate these provinces with greater power in areas such as project declaration and fund allocation, and step up support to them in the allocation of factors such as land, energy and data.
These provinces will also be granted more opportunities to conduct preliminary trials on reform and opening up, the official added.
China's local debt risks being effectively alleviated: official
Both Gold and silver prices hit record highs on Monday, driven by geopolitical tensions and market expectations for further U.S. Federal Reserve rate cuts.
Spot gold prices breached 4,420 U.S. dollars per ounce during the intraday trading on Monday, while gold futures contract on the New York Mercantile Exchange (NYMEX) briefly surpassed 4,450 U.S. dollars per ounce, both hitting all-time highs.
In addition, the silver futures contract on NYMEX climbed above 69.5 U.S. dollars per ounce on Monday, surging nearly three percent, also reaching a record high.
Bloomberg News reported that escalating geopolitical tensions and market expectations for further Fed rate cuts were the primary drivers behind the soaring gold prices.
Traders anticipate the Fed will cut rates twice in 2026 following last week's release of a series of U.S. economic data.
Meanwhile, U.S. President Donald Trump has consistently advocated more accommodative monetary policies.
Persistent geopolitical tensions in recent weeks have also heightened the safe-haven appeal of gold and silver.
Bloomberg projected on Monday that both gold and silver are poised for their strongest annual gains since 1979.
Due to purchases of central banks and inflows into exchange traded funds (ETFs), gold prices have surged by about two-thirds this year.
Gold-backed ETFs have recorded five consecutive weeks of increased inflows.
World Gold Council data shows that, except for May, the total holdings of these funds have increased month on month this year.
Beyond central banks, investors have also played a significant role in the gold price rally.
Fueled by concerns over the value of sovereign bonds and their denominating currencies, investors have been fleeing these assets.
The Wall Street Journal reported in October that investors who were concerned about the outlook for currencies like the U.S. dollar were aggressively buying alternative assets such as gold.
Goldman Sachs released a research report on December 18, forecasting that gold prices would rise to 4,900 U.S. dollars per ounce by the end of 2026.
Gold, silver prices soar to new record highs as investors hunt for safety
