China’s Ministry of Finance tackles debt problems before economic challenges [Video]

BEIJING — China’s Ministry of Finance press briefing over the weekend underscored how it is focused on tackling local government debt problems, instead of the stimulus markets have been waiting for.

In his opening remarks on Saturday, Minister of Finance Lan Fo’an laid out four measures, starting with increasing support for local governments in resolving debt risks. It was only after he outlined those four points that Lan teased that the country was looking to increase debt and the deficit.

“The press conference is consistent with our view that addressing local government financing struggles is a priority,” Robin Xing, chief China economist at Morgan Stanley, and his team said in a report Sunday. They also expect that the central government will play a larger role in debt restructuring and housing …