China to further reduce SOE debts

BEIJING, Feb. 7 (Xinhua) -- The State Council Wednesday unveiled an array of measures to further reduce leverage of state firms in its latest effort to rein in financial risks.

China will provide stronger support for debt-to-equity swaps, promote mixed-ownership reform, and improve policies on business reorganizations and bankruptcy, said a statement released after an executive meeting chaired by Premier Li Keqiang.

State-owned enterprises will continue to be a priority in the deleveraging campaign, and the work should be carried out via market-oriented, law-based means, according to the statement.

The meeting agreed that positive progress was made last year as corporate leverage ratios ended its gaining streak. Enditem