The central government has unveiled a new plan to help local governments cope with their immediate debt problems.
The Ministry of Finance has announced local governments are going to be able to convert up to 160-billion U.S. dollars worth of its debt into lower-interest bonds.
Last year, Chinese regulators banned the use of debt with a rating of below AAA in short-term repurchase agreements.
These are used by financial institutions to cover temporary funding short-falls.
Many local government financing vehicles have ratings of AA, essentially locking them out of the short-term financing market.
Some estimates suggest local governments here in China hold combined debts of some 4-trillion US dollars.
For more on local government debt management, we're now joined live by CRI's Financial Commentator Cao Can.
