China’s Ministry of Finance has established a Debt Management Department, according to the latest update on its website on Monday.

The new unit will be responsible for formulating and executing domestic debt policies, setting rules for central and local government borrowing, and planning bond issuance ceilings. It will also oversee the issuance and repayment of domestic bonds, manage foreign debt, and strengthen monitoring to curb hidden debt risks, the ministry said.

The creation of the department reflects Beijing’s push to enhance fiscal governance and mitigate financial risks amid rising concerns over local government debt.