China continues to push deleveraging despite initial progress

Updated 2017-09-26 11:01:04 Xinhua

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 of GDP at 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.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58September 26 2018 03:13:51

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16September 26 2018 03:13:51

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18September 26 2018 03:13:51

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords