China's State-owned enterprises (SOEs) will play an exemplary role in controlling debts and reducing financial leverage, according to a report by Economic Information Daily on Monday. To date, 12 centrally administered SOEs have entered into debt-to-equity swaps framework agreements in a bid to deleverage, the newspaper reported. Debt-to-equity swap deals are an important tool for SOEs' deleveraging. Shen believed that the financial structure of central SOEs will improve and their risk mitigation capability will increase as the enterprises implement various reform measures. China's banking regulator has recently approved the establishment of CCB Financial Asset Investment Co Ltd, the first market-oriented debt-to-equity swap company, with a registered capital of 12 billion yuan.

Source: The China Post July 24, 2017 06:33 UTC