Resolving local debt risks requires strengthened coordination and coordination among all parties. The recent Central Political Bureau meeting emphasized the need to effectively prevent and resolve local debt risks, and develop and implement a comprehensive debt restructuring plan. The work meeting of the People's Bank of China and the State Administration of Foreign Exchange in the second half of the year proposed to coordinate and coordinate financial support for local debt risk resolution work. Currently, local debt risks are generally safe and controllable. Data shows that as of the end of June, the balance of local government debt in China reached 37799.9 billion yuan, which is within the limit approved by the National People's Congress. In addition, the Ministry of Finance publicly stated at the end of last year that the growth momentum of implicit debt has been initially curbed, and more than one-third of existing implicit debt has been resolved. The risk of implicit debt has been steadily mitigated and is generally controllable. The reason why we need to develop and implement a comprehensive debt plan is because a considerable proportion of local bonds are currently held by financial institutions such as banks, and fiscal and financial risks are like two sides of a coin. To prevent further interweaving of fiscal and financial risks and maintain regional economic stability, more systematic and comprehensive solutions are needed. The clear package of debt restructuring plans at this meeting also means that resolving local debt risks requires strengthened collaboration between the financial sector, finance, state-owned assets, and other departments, as well as coordination among local government departments for policy implementation. To promote the resolution of local debt risks, it is necessary to grasp the word "stability". The causes of local debt risks are relatively complex, and financial regulatory authorities and relevant institutions should prevent other new risks from arising from resolving risks. We must adapt to local conditions and steadily and orderly promote relevant work. On the premise of stability, we will accelerate the clearance of risks in key regions and the disposal of medium to high risk institutions, firmly holding the bottom line of avoiding systemic risks. The key to preventing and resolving local debt risks lies in the word 'prevention'. Financial support for resolving local debt risks urgently requires further improvement of the financial risk prevention and control system. On the basis of building a hierarchical and segmented framework for bank risk monitoring, early warning, and early correction of hard constraints, financial management departments need to quickly improve the monitoring, evaluation, and prevention and control system of overall financial risks, enhance their ability to penetrate supervision, and achieve proactive measures to prevent potential risks. Financial support for resolving local debt risks should adhere to the principles of marketization and rule of law. Policy banks and asset management companies and other financial institutions should actively explore a package of debt redemption plans that comply with market rules. In the short term, it is necessary to develop follow-up financing plans in advance to address some refinancing issues after debt maturity. In the long run, financial regulatory authorities still need to promote linkage among all parties, improve the debt securitization mechanism, further innovate tools and means, enrich debt securitization products, and enhance the overall ability of financial support for local debt risk resolution. Author: Jin Guanping (Liao Xinshe)