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SOEs required to lower debt ratios

By Wang Yanfei | China Daily | Updated: 2018-09-14 07:33

The central government is requiring all State-owned enterprises to lower their average ratio of liabilities to assets by 2 percentage points by 2020 from 2017 levels, underscoring its commitment to promoting deleveraging to fend off financial risk.

An asset-liability constraint mechanism will be built for SOEs to strengthen supervision over their deleveraging moves, under a guideline issued on Thursday by the State Council.

Policymakers will establish "red lines" to notify enterprises in key sectors of alarming debt levels, the guideline said.

SOEs required to lower debt ratios

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