China has launched a debt swap plan worth 10 trillion yuan ($1.4 trillion) to deal with its worsening economic woes.
The plan focuses on reducing local government debt by allowing them to replace their debt through new loans.
Finance Minister Lan Fo'an announced the plan which allocates 6 trillion yuan ($838 billion) in three-year loans and 4 trillion yuan ($558 billion) in five-year special bonds.
Although the move is designed to help reduce China's 14.3 trillion yuan ($1.99 trillion) "hidden debt," some experts believe the impact will be minimal.
Mark Williams, Chief Asia Economist at Capital Economics, said the plan is unlikely to have a major impact as it only represents around 0.5% of China's GDP if spread over five years.
China's economy is under pressure with growth of only 4.6% in the third quarter, far from its target of 5%.
If this move fails, the impact may be worse not only on local governments, but on the increasingly overburdened Chinese people.
There are some who think China may delay a bigger stimulus injection, in anticipation of Donald Trump's return to the White House next year.
Will China be able to avoid getting stuck in a deeper debt crisis, or is this just the beginning of another big economic drama?
This plan may be just the beginning, but its impact hereafter will determine the fate of the world's second largest economy.
