NDRC: Market forces will shape debt-to-equity swaps

Official rules out coercion but says troubled firms will be persuaded to consider the alternative option

China will stick to market-based principles while promoting debt-to-equity swaps to tackle debt problems of companies, an official of the nation's top economic regulator said on Wednesday.

"The government will encourage debt-to-equity programs but won't force companies and creditors to make swap deals," said the official with the National Development and Reform Commission, who sought anonymity.