Essential Points


《The People’s Republic of China Budget Law》 [5]

Revised August 31, 2014

The State Council

Local governments and their affiliated departments must not irregulate the debt.


《Notice on Stopping Illegal Financing by Local Governments》(Fiscal [2012] no. 463) [6]

December 24, 2012

The ministry of Finance, NDRC1, the People’s Bank of China, CBRC2

Strictly forbidden to directly or indirectly absorb public funds and raise funds.

Effectively regulate local governments to borrow government debts by way of repurchase.

Resolutely stop local governments from illegally undertaking guarantees.


《State Council on Strengthening Local Government Debt Management Advice》 [7]

September 21, 2014

The State Council

Establish and standardize local government debt financing mechanism.

Prohibit the new government debt.

Standardize capital injection, subsidy behaviors, and prohibit illegal guarantees.

Stock debt screening and control.


《Notice on Further Regulating Local Government’s Debt Financing Behavior》 [8]

April 26, 2017

The ministry of Finance, NDRC3, the People’s Bank of China, CBRC4

Clean up and rectify the government’s illegal


Standardize the financing behavior of platform companies.


《Notice on Resolutely Stopping Local Illegal Financing in the Name of Government Procurement Services》 [9]

May 28, 2017

The ministry of Finance

Standardize government purchase services.


《Notice of the Ministry of Finance on Doing a Good Job of Local Government Debt Management in 2018》 [10]

February 24, 2018

The ministry of Finance

Accelerate the progress of local government debt replacement.