Country highlights deleveraging and capital structure optimization
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