Core Viewpoint - The establishment of the "Debt Management Department" by the Ministry of Finance signifies a dedicated approach to managing government debt, addressing the increasing scale of debt and the associated risks in China [1][2]. Group 1: Government Debt Management - The new department will unify the management of various government debt instruments, including national bonds, special bonds, and local government bonds, enhancing policy coordination and effectiveness [1][2]. - As of the end of 2024, the total legal government debt in China is projected to reach 82.1 trillion yuan, with local government hidden debt at 10.5 trillion yuan, indicating a significant scale of government liabilities [1]. Group 2: Challenges and Mechanisms - Despite the implementation of measures to alleviate local government debt pressure, issues such as the emergence of new hidden debts and the use of financing platforms for borrowing persist, necessitating a comprehensive debt management approach [2]. - The "14th Five-Year Plan" emphasizes the need to establish a long-term mechanism for government debt management that aligns with high-quality development, focusing on reducing hidden debts and reforming local government financing platforms [2].