Liu Xiaochun, Deputy Director of the Shanghai New Financial Research Institute: Small and medium-sized financial institutions may primarily rely on capital increase, restructuring, and mergers and acquisitions to mitigate risks

The Central Economic Work Conference proposed to effectively prevent and resolve risks in key areas, firmly maintaining the bottom line of not allowing systemic risks to occur. The conference also suggested the prudent handling of risks related to local small and medium-sized financial institutions. Liu Xiaochun, Deputy Director of the Shanghai New Financial Research Institute and Deputy Director of the Financial Research Institute of Shanghai Jiao Tong University, believes that local debt risks are gradually being resolved, and the next stage needs to focus on addressing real estate risks and risks associated with small and medium-sized financial institutions