China has started bond issuance for the replacement of 2 trillion yuan ($278.79 billion) of local government debt this year, said Lou Qinjian, spokesman for the third session of the 14th National People's Congress, at a press conference in Beijing on Tuesday.

Moving forward, the Standing Committee of the National People's Congress will enhance oversight of government debt management, said Lou.

"Particular focus will be placed on supervising the expansion of local government debt limits and monitoring the implementation of measures to swap existing implicit debt," he added.

Efforts will be made to further strengthen government debt management, proactively and prudently mitigate local debt risks, and accelerate the establishment of a debt management mechanism, said the spokesman.

The bond issuance for the local government debt replacement program in 2025 will play a crucial role in mitigating local government debt risks, ensuring fiscal stability, and supporting high-quality development, Liu said.

By the end of 2024, the entire 2-trillion-yuan quota for 2024 refinancing bonds had been issued, with most regions completing the debt swap, he said.