Core Viewpoint - The rapid implementation of a 10 trillion yuan debt resolution package is significantly alleviating local government debt risks and enhancing local development momentum, although concerns regarding the management and usage of these funds have emerged [2][4]. Summary by Sections Debt Resolution Fund Management - There are issues with the management of debt resolution funds, including misuse and the emergence of new hidden debts, as well as instances of false debt resolution that obscure the true level of local debt [2][3]. - The Ministry of Finance has disclosed 12 typical cases of accountability for hidden debts, with most cases involving the addition of new hidden debts [2]. Specific Cases of Mismanagement - Examples include Chengdu, Sichuan, which added hidden debts of 61.408 billion yuan through state-owned enterprises for public projects [2]. - In Jilin Province, false debt resolution was reported, with 2.85 million yuan misrepresented as resolved debt [3]. - The audit report indicated that 92 regions misappropriated 65.18 billion yuan of local special bond funds, primarily for "three guarantees" and repaying state-owned enterprise debts [3]. Recommendations for Improvement - Experts suggest implementing comprehensive monitoring of debt resolution funds to ensure proper allocation and prevent misappropriation [5][6]. - Strengthening audits and supervision is recommended, with severe penalties for regions and individuals found misusing funds [6]. - The Ministry of Finance plans to issue 10 trillion yuan in local government bonds from 2024 to 2028 to replace existing hidden debts, with over 5 trillion yuan already issued [4][6]. Current Debt Situation - The overall risk of local government debt is considered manageable, with a significant reduction in hidden debt, which is projected to be 10.5 trillion yuan by the end of 2024, down approximately 3.8 trillion yuan from the end of 2023 [6][7].