Risks that should be prevented and defused

Luo Zhiheng believes that next year, the prevention and resolution of risks will focus on the following three aspects: First, continue to promote the prevention and resolution of local government debt risks, hardening local debt constraints, and prevent hidden debt from continuing; Second, dissolve real estate risks; Third, address the risks of small and medium-sized financial institutions in time to prevent risks from spreading.

In terms of mitigating risks related to the real estate sector, Pang Ming, chief economist with global consultancy JLL China, said, the government needs to adapt to the new situation and new trend of China's urbanization pattern and major changes in the supply and demand relationship of the real estate market. The government should timely adjust and optimize real estate policies according to the specific situation of each city, make good use of the policy toolbox, accurately implement differentiated housing credit policies, and better meet the rigid and improved housing needs of residents. At the same time, maintain the stability and normalization of key financing channels such as credit, bonds and equity. In particular, the government should facilitate high-quality housing enterprises in activating assets, helping them continue their liabilities and supplementing their rights and interests to improve expectations, and drive the cash flow, investment activities, mergers and acquisitions of the real estate industry back to the normal development track.