Wang Zhaoxing: do not exclude the expansion of market - oriented debt to equity and the implementation of the institutional scope

Mar 13, 2018 12:00:00 AM

China CBRC vice chairman Wang Zhaoxing attended the CPPCC economic sectors panel discussion today, when asked whether the market will accelerate the process of debt that is currently being steadily market debt, and improve the relevant supporting measures, the next step is expected to accelerate the process.

Wang Zhaoxing said the market for debt implementation mechanism, landing, regulators hope type debt implementation mechanism possible diversification, capital and funding sources are also diversified, by widely absorbing social funds to accelerate debt project landing. Does the

mean that non banking institutions will possibly participate in the implementation of market debt to equity swap? Wang Zhaoxing responded, "as long as conditions are met, it is possible to become an organ of debt to equity swap, including non bank financial institutions, which can also have functions in this area, and it will not exclude further expansion measures in this regard.

in October 2016, the State Council issued the "State Council on actively and steadily reduce leverage views" (hereinafter referred to as the "No. 54"), from the debt mode, the source of funds, participants, debt scope has made a clear policy guidelines, in order to release market potential and encourage financial institutions to participate in. In the 54 article, it is proposed that the banks, the implementing agencies and enterprises determine the object of the transfer, the creditor's right and the price and condition of the transfer.

for more than a year, the market - oriented debt to equity swap contract scale has exceeded trillion yuan. In February 5th of this year, Bank of communications, a wholly owned equity and equity swap implementing agency, held a contract signing ceremony in Shanghai for the opening and strategic cooperation agreement. At this point, 5 large banks have all set up investment subsidiaries to carry out the work of market - oriented debt - to - equity swap.

's report on the work of the government this year suggests that in 2018, it is necessary to accelerate the market - oriented debt - to - equity swap and the merger and reorganization of enterprises.

also, Wang Zhaoxing stressed that the CBRC has always asked banks to increase the disposal of non-performing assets, and recently adjusted the requirements for provisioning of non-performing loans. At the same time, the CBRC requires banks to reflect the situation of non-performing loans as much as possible, including some concerned loans, which need to be disposed in time after analysis and confirmation. "In the disposal of non-performing assets, we will further intensify our efforts. The disposal of the bad assets of the bank is a very important part of the fight against the risk of hard work. " Wang Zhaoxing said.


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