BEIJING, Dec. 21 -- China has vowed to take further de-leveraging steps to guard against and defuse financial risks in 2016, said a statement released Monday after a key economic policy meeting.

The Central Economic Work Conference said China will effectively defuse local government debt risks.

Credit defaults will be punished according to law, the statement said.

China will strengthen all-around supervision, regulate various financing activities, and launch a program to address financial risks and clamp down on illegal fund-raising.

The government will also improve risk monitoring and warning, tackle risks properly and resolutely avoid systematic and regional risks.

Local governments should optimize bond issues and push forward debt swaps.

The Central Economic Work Conference, an annual meeting during which Chinese leaders review the past year's economic performance and map out plans for the next year, was held in Beijing from Friday to Monday.