The recently appointed chief of China’s top banking regulator reiterated on Thursday that the market-oriented debt-to-equity swap initiative can “greatly help reduce leverage.”
The implementation of the swaps will be guided by markets and the law, and there will be no State orders or official targets for the volumes, said Guo Shuqing, chairman of the China Banking Regulatory Commission (CBRC).
As of early February, more than 430 billion yuan ($62.5 billion) in debt-to-equity swap deals had been signed, Guo said at a press conference in Beijing, stressing that banks and companies made the deals based on their own free will.
As of January, China’s banks held 228 trillion yuan in assets, up 14.4 percent year-on-year, liabilities rose 14…
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