Asia: Footloose and debt-free

Author: | Published: 26 Sep 2016

After months of speculation and indecision, China's State Council finally gave on July 18 its official backing for the planned revival of the debt-to-equity swap initiative which was last used in 1999. This was followed by a new document issued by the Council on August 22 urging non-financial enterprises, such as suppliers, to swap their accounts receivable for equity in their indebted clients.

However, according to statistics published by the Ministry of Finance, as of the end of last year, industrial companies with annual sales of RMB20 million ($3 million) had RMB11.45 trillion...