State Council Executive Meeting: Improve Local Government Special Bond Management and Promote High-Quality Development of Government Investment Funds

On December 16, 2024, Premier Li Qiang presided over a State Council executive meeting to implement the decisions of the Central Economic Work Conference. The meeting focused on optimizing and improving the management mechanism of local government special bonds and studying policy measures to promote the high-quality development of government investment funds. The meeting also reviewed and approved the draft Regulations on the Management of Public Security Video Image Information Systems.

The meeting highlighted the need to implement a “negative list” management approach for the areas where local government special bonds can be used, allowing their use for land reserves, supporting the acquisition of existing commercial housing for use as affordable housing, and expanding their use as project capital. The meeting emphasized the importance of strengthening the full-process management of special bonds, improving the fund supervision mechanism and the repayment mechanism. The meeting also discussed policy measures to promote the high-quality development of government investment funds, emphasizing the need to build a scientific and efficient management system, highlight government guidance and policy orientation, and operate government investment funds in accordance with market-oriented, law-based, and professional principles to better serve the national development strategy. The meeting called for the development and expansion of long-term and patient capital, the improvement of differentiated management mechanisms for different types of funds, and the prevention of crowding out social capital. It also stressed the need to establish a responsibility mechanism that aligns authority with responsibility and is compatible with incentives and constraints, creating an environment that encourages innovation and tolerates failure.