Debt, equity swaps to help tackle risks, boost growth

Commercial banks urged to set up financial asset investment units

China will accelerate the debt-for-equity swaps of qualified companies to reduce high corporate leverage, resolve financial risks and support overall economic growth, the country's top economic regulator said.

The country will encourage commercial banks to set up financial asset investment subsidiaries to participate in the market-oriented swap program and will support them in playing a major role in the process, according to a guideline jointly issued on Monday by the National Development and Reform Commission, the People's Bank of China, the Ministry of Finance and the China Banking and Insurance Regulatory Commission.