China has reduced the number of local government financing platforms by more than 70 percent over the past two and a half years, as authorities press ahead with nationwide efforts to defuse implicit debt risks, according to the central bank.

Pan Gongsheng, governor of the People’s Bank of China, told the 18th Session of the Standing Committee of the 14th National People’s Congress on Thursday that the number of financing platform companies had dropped 71 percent from March 2023 levels, while their outstanding financial debt had fallen 62 percent by the end of last month.

Pan said the progress reflects coordinated action by both central and local governments under a comprehensive policy framework aimed at controlling debt expansion and strengthening fiscal discipline. The campaign forms part of Beijing’s broader strategy to reduce systemic financial risks, improve transparency in local government borrowing, and promote more sustainable fiscal management practices across regions.