China Construction Bank eyes over 50 debt-to-equity swaps

China Construction Bank Corp said it has approached more than 50 companies that could convert debt to equity as part of the nation's efforts to tame an explosion in corporate leverage that poses risks for financial stability.

The bank assessed the firms' debt levels, industry indicators, and the strength of their relationships with CCB, said Zhang Minghe, who is leading the bank's swap program, called "Spring Rain." The companies include State-owned enterprises and private firms in industries from steel to coal, Zhang said at a briefing in Beijing on Tuesday.

The banker was commenting after CCB in the past week announced deals with Wuhan Iron Steel Group and Yunnan Tin Group worth more than 34 billion yuan ($5 billion) and aimed at cutting leverage. Zhang said that the approach laid out by the government for the debt-to-equity initiative had avoided what bankers would be "most scared of" - deals where the State was matchmaker.