China's National Financial Regulatory Administration held a meeting on Monday afternoon to study the implementation measures for the trial provisions concerning accountability for failing to prevent or defuse financial risks, which were deliberated by the Communist Party of China leadership earlier on Monday.

The NFRA meeting said that the provisions in this regard are essential for the effective implementation of tasks including enhancing financial regulation, mitigating and resolving financial risks, and fostering high-quality development in the financial industry.

The meeting stressed that prevention and resolution of financial risks, particularly the avoidance of systemic financial risks, is a core task of financial work. It is essential to resolutely uphold the principle of not allowing systemic financial risks to materialize.

It called for a vigorous push to reform and defuse risks within small and medium-sized financial institutions, with a tailored and phased approach based on local conditions.

It is important to promote a healthy interaction between finance and the real estate sector, enhancing the role of the urban real estate financing coordination mechanism, to satisfy the legitimate financing needs of real estate projects and strongly backing the construction of the so-called three major projects that include affordable housing, the meeting said.

Additionally, efforts should be coordinated to forestall and address local government debt risks, with guidance provided to financial institutions to conduct debt restructuring and replacement in a manner consistent with market principles, it said.