Login

Reload

Remember me Forgot it?

Not a subscriber?

Click on the button below to create your account and get immediate access to Xinhua Silk Road Database.

Start a Free Trial

Subscribe

Belt & Road Weekly Subscription Form

Research Report

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Policy & Politics

HOME > Policy & Politics


China lays out timetable for SOE deleveraging

September 14, 2018


Abstract : China on Thursday published guidelines to strengthen asset and liability constraints on the country's state-owned enterprises (SOEs), with clear goals laid out.

朝阳门国企聚集

BEIJING, Sept. 14 (Xinhua) -- China on Thursday published guidelines to strengthen asset and liability constraints on the country's state-owned enterprises (SOEs), with clear goals laid out.

The average debt-to-asset ratio of SOEs should be reduced by 2 percentage points by the end of 2020, as compared with that at the end of 2017, according to the guidelines released by the general offices of the Communist Party of China Central Committee and the State Council.

After 2020, the debt-to-asset ratio of SOEs should be kept at the average level of companies in the same industry with the same scale, according to the guidelines.

Warning and monitoring systems for companies' assets and liabilities should be established while a time limit should be set for companies with high leverage to reduce their debt-to-asset ratio, the guidelines said.

A clear boundary should be set to separate government debt from corporate debt, with local governments strictly banned from borrowing in the form of corporate debt, according to the guidelines.

China has been stepping up SOE deleveraging as part of its efforts to defuse financial risks.

The average debt-to-asset ratio for the country's centrally-administered SOEs stood at 66 percent by the end of June, down by 0.3 percentage points from the beginning of the year.


Related Coverage

Focus

Think Tank

  • How China can become a major importer

    November 16, 2018

    To actively play the role of a "major importer" in the future is not simply ...

  • Raising China's imports requires targeted long-term ...

    November 15, 2018

    It is a long-term process for China to expand imports, and policymakers need...

  • Deepening reform and opening-up will help achieve ec...

    November 14, 2018

    Despite severe and complicated external and internal situations, China's eco...

  • Contours of a new international economic order

    November 13, 2018

    CIIE presents China as the world's most promising market for imports of good...

  • Ask Us A Question

    If you have any questions, please enter them in the box below.

    Reload

    Write to Us

    Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

    Click on the button below to create your account and get imhttp://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

    Start a Free Trial