Coun­try high­lights delever­ag­ing and cap­i­tal struc­ture op­ti­miza­tion

China Daily (Hong Kong) - - BUSINESS -

BEI­JING — Low­er­ing the lever­age ra­tio of State-owned en­ter­prises, which are re­spon­si­ble for more than half of cor­po­rate debt, will put China into the fast lane of pre­vent­ing sys­temic fi­nan­cial risks.

SOEs will take the lead in con­trol­ling debt level and con­tain­ing the lever­age ra­tio, and fur­ther ac­cel­er­ate the clear­ing of “zom­bie en­ter­prises,” the Xin­hua-run Eco­nomic In­for­ma­tion Daily re­ported, cit­ing a source with the State-owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion.

At the end of Q1, the lever­age ra­tio of non-fi­nan­cial com­pa­nies rose to 157.7 per­cent from 155.1 per­cent at the end of last year, ac­cord­ing to the Na­tional In­sti­tu­tion for Fi­nance & De­vel­op­ment. SOEs were re­spon­si­ble for about 60 per­cent of to­tal cor­po­rate debt.

To defuse risks from fast cor­po­rate debt ex­pan­sion, China

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