Bankruptcy mechanism on the way

PBOC official: Measures aimed at preventing systemic financial risks

A national bankruptcy mechanism is under discussion by policymakers, covering local governments and enterprises, to prevent systemic financial risks, said a senior official with the central bank.

"The key task is to prevent debt default risk," said Wan Cunzhi, director-general of the PBOC's Credit Information System Bureau, at a news conference on Thursday. He said the mechanism will include indebted local governments, while market-oriented measures will be introduced to ease their debt burden.