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ECONOMY

China’s Long Deleveraging Campaign Marches On

By Pan Che
A worker on the job at a state-owned Wuhan Iron and Steel Group plant in August 2016. The company later merged with Shanghai-based Baosteel, and the new firm pioneered mixed-ownership reform. Positive progress has been made over the last year in lowering state-owned enterprise leverage by using measures including mergers and restructurings, Premier Li Keqiang said. Photo: VCG
A worker on the job at a state-owned Wuhan Iron and Steel Group plant in August 2016. The company later merged with Shanghai-based Baosteel, and the new firm pioneered mixed-ownership reform. Positive progress has been made over the last year in lowering state-owned enterprise leverage by using measures including mergers and restructurings, Premier Li Keqiang said. Photo: VCG

*Cabinet drive to diffuse risk will remain its top priority in 2018

*Leverage ratio of overall corporate sector stood at 163.4% at the end of last year’s second quarter, continuing a 4-year-long downward trend

(Beijing) — Reducing debt levels at state-owned enterprises will continue to top the government agenda this year, in Beijing’s ongoing deleveraging campaign aimed at defusing financial risk, a meeting of China’s cabinet said.

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