South Korea: Doosan Dishes Up IPO Dirge
1 November, 2016
Learning From Your Investment Mistakes
1 November, 2016Euromoney, November 2016
It’s crunch time. China appears to have acknowledged what commentators have been saying with mounting alarm for years: that there is just too much corporate debt in China, and something needs to be done about it.
In October China’s State Council approved a programme of debt-to-equity swaps to bring down China’s soaring corporate debt, now estimated at the equivalent of $18 trillion, or 170% of GDP. Reaction to the news has been mixed. China analysts and commentators have urged it to do something about the corporate debt load – with the IMF the latest to do so in a detailed working paper in October – but there is also concern that the measure fails to deal with an underlying problem and just lets errant companies and projects off the hook.
China has sought to insist that these will be market-oriented swaps that are only open to companies with good prospects. Lian Weiliang, an official at the National Development and Reform Commission, said at a briefing in Beijing on October 10: “Debt conversion is no free lunch. The relevant market players will make their own decisions, take their own risks and enjoy the benefits.”
Full article: http://www.euromoney.com/Article/3599435/Chinas-swap-shop-tries-to-avoid-swamping-banks
