The chairman of CBRC Shang Fulin said that unlike the European debts, China's local debts are mainly productive debts rather than unproductive debts. Moreover, most of the debts are asset-backed therefore the risks are more controllable. Anbound research team highlighted that based on Chairman Shang Fulin’s risk differentiation, China’s local debt risk depends on its corresponding asset quality thus it is important to maintain the asset price at a certain level.