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Debt-To-Equity Can't Be The Only Way to Deal With Corporate Debt

By He Fan, Zhu He and Li Rui

One of China's biggest problems at the moment is debt, especially in the non-financial enterprise sector.

To solve the problem, the State Council published on Oct. 10 a guiding opinion on reducing the leverage ratio of enterprises. Along with that document, it also released detailed guidelines on how to implement a swap program that will see loans that companies borrowed from banks converted into equity capital.

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