Govt promises tougher debt regulation

China pledged to strengthen debt regulation of local government, enterprises as well as residents to prevent systemic risks, a top official said on Thursday during the ongoing first session of the 13th National People's Congress.

"The government debt remains relatively manageable despite its rapid growth. China has noticed some hidden debts from local governments and is dealing with it," said Yang Weimin, deputy head of the Office of the Central Leading Group on Financial and Economic Affairs.

To prevent debt risks from local government, the country is expected to "control the increase of new hidden debts" and "issue some policies to resolve the existing debts," said Yang, who is also a member of the National Committee of the Chinese People's Political Consultative Conference.

"Controlling debt of State-owned enterprise should be on top of our agenda and I think the State-owned Assets Supervision and Administration Commission is devising policies to regulate it," he added.

Real estate debts are increasing at a fast pace, said Yang. "China should prevent excessive growth of residential debts through controlling property bubbles and China needs to establish a new housing and long-term real estate mechanism to prevent property bubbles from being further inflated," Yang said.