China will continue to lower its corporate debt levels, even though it has made initial progress, the top economic planner said Monday.
There has been initial progress in reducing leverage levels, with the corporate leverage levels steadying and then declining while debt risks having been mitigated, the National Development and Reform Commission (NDRC) said on its website.
The government will focus on cutting debt levels at state-owned enterprises (SOEs) by improving their governance structure and pushing mixed ownership reform, the commission said.
To lower SOEs' debt levels, the government will work on establishing a debt-ratio warning line management mechanism of different industries, it said.
The country will use market-based and legal means, including debt-for-equity scheme, to address "zombie companies." It will also encourage mergers and acquisitions.
The NDRC did not provide its data on corporate debt levels, but cited figures from the Bank for International Settlements (BIS), which showed China's overall leverage ratio is still growing, but at a slower pace.
Overall leverage was 257.8 percent ofGDPat the end of the first quarter of 2017, slightly up from 257 percent at the end of 2016. The non-financial corporate leverage ratio declined to 165.3 percent at the end of March from 166.3 percent at the end of 2016, according to the BIS data.
Related articles:
Related suggestion:
Texas Rangers score 10 runs in second inning, beat Oakland Athletics 15Hotpot festival spices up Chongqing's consumer marketGwyneth versus the Golden Arches! Paltrow mocked for homemade 'McMuffin' without a BUNGisele Bundchen joke from Tom Brady roast came from Drew Bledsoe's wife, exMarcell Ozuna delivers runKylian Mbappé trudges off after another Champions League dream with PSG endsGrinning dogTürkiye's Istanbul welcomes 1st Chinese tourist group after pandemicGuangdong avenge Shandong, seal 6th straight winIvankovic vows all
1.813s , 5262.0390625 kb
Copyright © 2024 Powered by China continues to push deleveraging despite initial progress ,Planet Panorama news portal