(Yicai Global) Jan. 13 -- China’s local state-owned assets regulators must pay attention to risks in fundraising platforms and other major sectors such as real estate, loans and investment so as to firmly adhere to the fundamental principal of not causing any significant risks, the country’s central regulator said.

The State-owned Assets Supervision and Administration Commission laid out a seven-point plan to prevent and avoid risks in a meeting today. An emphasis should be put on improving the quality and efficiency of economic growth, upgrading the reform of SOEs, strengthening technological innovation in SOEs, promoting the optimized positioning of state-owned assets, accelerating the construction of advanced manufacturing and boosting efficient regulation of state-owned assets, according to a notice on the commission's website.

Property developers’ debt and investment platforms’ invisible liabilities are two major areas where potential systemic risks exist, said Li Chao, chief economist at Zheshang Securities.

The risks of real estate developers’ debts are being unleashed, which will impact local governments and banks to a certain extent, while governments’ leveraging will to some degree be restricted by the prevention of systemic risks.

Standardizing the management of local governments’ fundraising platforms is an important way of reducing their debt risks, Minister of Finance Liu Kun said recently.

Letting SOEs and central government-owned enterprises get involved in more high-quality projects in a market-oriented manner would be a suitable means of stabilizing the size of local government debts, Li said,

The value of state-owned corporate assets climbed 10.1 percent as of the end of November year on year to CNY205.5 trillion (USD30.6 trillion), according to the commission. And their business revenue advanced 8.1 percent in the first 11 months year on year to CNY33.7 trillion (USD5 trillion).

Editors: Xu Wei, Kim Taylor