BEIJING, July 30 (Xinhua) – China Monday prescribes 21 measures on lowering corporate leverage ratio this year, providing new solutions to the debt-for-equity swap issue, reported Shanghai Securities News Tuesday.
According to a guideline jointly released by the National Development and Reform Commission, the People’s Bank of China, the Ministry of Finance and China Banking and Insurance Regulatory Commission, market oriented debt-for-equity swap asset management products will be listed into the white list of investible products for insurance funds and other long-term funds, and transactions concerning the market-oriented debt-for-equity swaps will be speeded.
Meanwhile, the country will carry out pilot swaps of debt for preferred stocks and allow publicly-raised assets management products to participate in debt-for-equity swaps.
China has been promoting the debt-for-equity swap for nearly three years. By mid-July 2019, the contracted value of market-oriented debt-for-equity swaps had reached 2.4 trillion yuan, of which, one trillionn yuan had been put in place, according to the National Development and Reform Commission, China’s top economic planner.
Of the total, 390 billion yuan of debt-for-equity swap contracts were signed this year, while 380 billion yuan were put in place. (Edited by Duan Jing, duanjing@xinhua.org)
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