CSIC swaps debt for equity in two of its subsidiaries

China Shipbuilding Industry Corp, one of the Chinese Navy's biggest contractors, announced debt-to-equity swaps which will see eight investors picking up stakes in two of its unlisted subsidiaries for an estimated 22 billion yuan ($3.27 billion).

It is the country's first defense-related industrial enterprise supervised by the central government to restructure its finances via such swaps.

Li Jin, chief researcher at the China Enterprise Research Institute, said: "Swaps could lower the company's leverage ratio and ease its financial burden by increasing capital adequacy. It will eventually promote CSIC's sustainable development."