s
Global EditionASIA 中文双语Français
Business
Home / Business / Macro

China to support debt-for-equity swap for private businesses

Xinhua | Updated: 2019-07-29 21:39
Share
Share - WeChat
A technician works on the production line of an energy equipment manufacturer in Nantong, Jiangsu province. [Photo by Xu Congjun/for China Daily]

BEIJING -- China will support financial institutions to conduct market-oriented debt-for-equity swaps on qualified private enterprises, the country's top economic planner said Monday.

The move aims to reduce debt risks for private businesses and boost the growth of the private economy, said the National Development and Reform Commission.

According to a guideline jointly released by the NDRC, the People's Bank of China, the Ministry of Finance and the China Banking and Insurance Regulatory Commission, the country will strengthen financial asset investment firms' pivotal role in the swap program, encourage the participation of social capital and accelerate asset transaction.

Meanwhile, the country will step up efforts to promote pilot swap projects for preferential firms and enhance the asset pricing of swaps, the guideline said.

Various measures will be unveiled to lower enterprise leverage, handle the debt issues of "zombie companies" and optimize the safeguard mechanism for bankruptcy.

In addition, the guideline stressed the monitoring and warning of debt risks and urge financial institutions to increase restriction for debt financing.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE