China’s regulators to use ‘more supportive measures’ to promote corporate deleveraging

Vastavam web: China’s regulators will introduce more measures to promote corporate deleveraging, with an emphasis on state-owned enterprises, the official English-language China Daily said on Wednesday, citing an unnamed “leading expert on financial regulatory matters.” Regulators will “undertake more supportive measures to overcome obstacles that have hampered debt-reduction problems, and heavily indebted state-owned enterprises will be the key target,” the paper said.

China’s state planner said in August that the country will deploy monetary policies such as targeted cuts in the reserve requirement ratio (RRR) for banks to support debt-to-equity swaps this year as it looks to lower corporate leverage ratios.