Localization of debt new trend: many places have completed the clearance of hidden debts, accelerating the repayment and "retreat platform" this year.

As the deadline for the target of zero hidden debts by 2028 and the completion of the "platform exit" task for local government financing platforms in June 2027 approaches, the work of localizing debts has entered a crucial stage of overcoming difficulties. Securities Times reporters have found that in the recent government work reports and fiscal budget reports released by various regions for 2026, many regions have announced the clearance of local hidden debts, significantly reducing the number of urban investment companies, and some regions have exceeded the debt reduction targets. In 2025, the debt risk of local governments in China further converged, and after debt substitution in various regions, the average interest cost of debts decreased by more than 2.5 percentage points. According to incomplete statistics from reporters, since 2026, at least 34 cities nationwide have announced the latest progress in clearing hidden debts. Among them, regions such as Siping City in Jilin, Songyuan City in Jilin, and Shuangyashan City in Heilongjiang announced that they had cleared hidden debts last year. "With the deepening of state-owned enterprise reform and the continuous increase in debt risk prevention and control requirements, many regions are now urgently demanding the 'platform exit' of urban investment companies. More and more regions will clear hidden debts ahead of schedule, and the resolution of hidden debts is nearing completion," said Zhou Lijun, Executive Director of Public Utilities at Orient Jincheng, in an interview with reporters.