China should effectively prevent and defuse major economic and financial risks in 2023, according to a government work report submitted Sunday to the national legislature for deliberation.

The country needs to deepen reform of the financial system and improve financial regulation, said the report.

"We should ensure effective risk prevention and mitigation in high-quality, leading real estate enterprises, help them improve debt-to-asset ratios, and prevent unregulated expansion in the real estate market to promote stable development of the real estate sector," it said.

The country should also make efforts to prevent and defuse local government debt risks, according to the report.