China's Finance Ministry on Wednesday detailed new rules on managing local government debt. 

The regulations set a cap on bonds issued by local governments. They also standardize planning and approval procedures and strengthen supervision.

The regulations stipulate that debt raised by local governments before the new budget law must be included in budget planning.

In addition, the regulations mandate that local authorities should convert those debts into regular bonds within the deadline set by the State Council.

Local government debt has accumulated since the global financial crisis. The rising ratio of public debt to GDP has triggered concerns over China's financial stability.