China Fuels Speculation Debt-for-Equity Swaps Starting Soon

  • State Council statement seen as signaling trial will go ahead
  • Swaps may be tool for tackling build-up of leverage, bad debt

China’s cabinet fueled speculation that the nation is pressing ahead with debt-to-equity swaps that would give lenders stakes in some companies as part of tackling a build-up in corporate leverage and bad loans.

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