The speaker proposed establishing a public asset equity market to clear local government debt.

On October 6, 2026, a speaker proposed that the key to clearing local government debt lies in establishing an equity market for public assets. According to related reports, the proposal suggests securitizing heavy assets such as infrastructure through tools like REITs and RWA and restoring their liquidity; otherwise, the debt will fall into a Ponzi cycle. The report also lists three paths: the secondary real estate market needs to consolidate property rights, adopt flexible planning, and rely on AI for automated valuation; REITs can endow public assets with cash flow, and projections show that every 1% increase in REITs valuation can unlock 3-4 trillion yuan; and a real estate equity trading market that draws on the approach of the stock market. At present, the proposal remains at the stage of being put forward and discussed, and there is no qualified factual evidence of subsequent implementation progress.

AI-generated from public reports

1. Oct 6· 1 reports

   The speaker proposed establishing a public asset equity market to clear local government debt

   Source:English text is being prepared.