Core Viewpoint - The reduction of local government hidden debt in China is significant, with a decrease from 14.3 trillion yuan at the end of 2023 to 10.5 trillion yuan by the end of 2024, indicating effective debt management policies [1][2]. Group 1: Debt Reduction and Management - As of the end of 2024, local government hidden debt stands at 10.5 trillion yuan, down from 14.3 trillion yuan at the end of 2023, reflecting a reduction of 3.8 trillion yuan within a year [1]. - The implementation of a comprehensive debt resolution policy, including the issuance of 10 trillion yuan in local government bonds from 2024 to 2028, has contributed to this reduction [1]. - By the end of 2025, over 2 trillion yuan in local government bonds have already been issued for the purpose of replacing existing hidden debt, with expectations that the hidden debt will fall below 8 trillion yuan this year [1]. Group 2: Financial Impact and Efficiency - The average interest cost of local government debt has decreased by over 2.5 percentage points, leading to savings of more than 450 billion yuan in interest expenses [2]. - The debt resolution process has not only reduced interest burdens but also enhanced local development momentum by freeing up financial resources for economic growth [3]. - Over 60% of financing platforms have exited, indicating a significant reduction in hidden debt and a faster pace of reform [3]. Group 3: Future Debt Management Strategies - The government plans to continue improving debt management mechanisms during the 14th Five-Year Plan, focusing on balancing development and safety [4]. - Key strategies include reducing existing debt, enhancing management practices, optimizing the effectiveness of bond issuance, and proactively monitoring risks [5][6]. - The government aims to establish a unified long-term regulatory system for both hidden and legal debts, ensuring transparency and sustainability in debt management [5][6].