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magazine of the Communist Party of China Central Committee. He said more efforts a
re needed to implement the proactive fiscal policy and boost efficiency this year.
Preventing and defusing local governments’ hidden debt risks is key to controlling major risks, he said.
Innovative financial tools will be introduced for debt swaps, and the indebted comp
anies will be allowed to choose the same way, under guidance from the local governments, Liu Shangxi, hea
d of the Chinese Academy of Fiscal Sciences, the Ministry of Finance’s think tank, told China Daily.
“The total amount of hidden debt waiting to be swapped has not yet been calculated, as this
round of debt swaps will not involve the government’s administrative orders, but depends on the ma
rket’s appetite based on the evaluation of the potential default risks and the companies’ solvency,” he said.
on the new science and technology innovation board, which will pilot the registration-based IPO system, according to Xinhua.
To accommodate the progress of reforms and development of the capital market, other modifications have also been made, cov
ering public issuance of securities, securities trading, and the protection of investors’ rights and interests, Xinhua said.
Dong expects the latest version to legitimize registration-based IPO systems not only
on the new board, but also across China’s whole A-share market. “Once the system achieves success on the n
ew board, it should be adopted on other submarkets as soon as possible,” Dong said.
President Xi Jinping announced in November that China will launch the S&T innovation board and pilot the registr
ation-based IPO system. Analysts expect the new board to begin trading around the middle of this year.
“The latest draft is expected to make comprehensive revisions, and it could go a long way
toward restoring public investors’ confidence and modernizing the regulation and governance of the ca
pital market,” said Liu Junhai, director of the Business Law Center at Renmin University of China.
inistration put into practice the Taiwan Travel Act and the Asia Reassurance Initiative Act, both passed last year, to fulfill its promise to the Tsai authorities. In their
letter to US President Donald Trump, some Congress members have said the Taiwan Relations Act will help mai
ntain peace, security and stability in the Indo-Pacific region and suppress Beijing’s so-called aggression.
Moreover, to seek the US’ protection and contain Beijing, the Tsai authorities have been hyping up
the island’s strategic value for Washington. But the fact is, the empty promises given by the Congress me
mbers cannot guarantee any safety to the Tsai authorities and, instead, could put them in danger.
Ahead of the 2020 elections on the island, some US Congress members are incitin
g the Tsai authorities to provoke disputes with the mainland by supporting those seeking “Taiwan ind
ependence”. But since any attempt to split Taiwan from the motherland would lead to a conflict, it will be in the interest of neith
er side of the Straits nor the US. Worse, such a conflict would destroy peace and stability in the entire Asia-Pacific region.