BEIJING, April 11 (Xinhua) -- China’s market-driven contracted debt to equity swaps programs numbered 420 and their contracted value reached two trillion yuan by the end of February, reported Shanghai Securities News citing an official Wednesday.
As an effort to lower corporate sector leverage and support debt-ridden high growth potential enterprises, China’s top economic planner, the National Development and Reform Commission (NDRC) will continue to focus on structural deleveraging and leverage reduction of state-owned enterprises in next step, the report quoted Chen Hongwan, head of Department of Fiscal and Financial Affairs under the NDRC as saying.
Among the contracted debt to equity swaps programs, 630 billion yuan of funds has already been financed to support 337 ones of them, representing 31.07 percent of fund coverage ratio by end February.
According to the newspaper, Chen made the remarks in his written speech for the Wednesday releasing of the 2019 China financial sector non-performing assets (NPAs) report by China Orient Asset Management Co., Ltd., one of China’s four state-owned asset management companies originally established to deal with NPAs of state-owned lenders. (Edited by Duan Jing, email@example.com)