Deals
China Rescue Loops in Top State Bank to Aid Private Firms
- Shandong Chenming, Eternal Asia among firms benefitting
- Debt swaps will help deleverage economy: Lianxun Securities
This article is for subscribers only.
Targeted efforts by China to shore up the finances of cash-squeezed companies took a fresh turn this week, with the biggest state bank throwing a lifeline to a clutch of private firms.
Industrial & Commercial Bank of China Ltd., the nation’s largest lender by assets, has expanded a debt-to-equity swap program in wake of a record run of defaults. Shandong Chenming Paper Holdings Ltd. and Eternal Asia Supply Chain Management Ltd. each signed 3 billion yuan ($433 million) of such deals with ICBC, exchange filings showed on Wednesday. Guangdong Liantai Group also announced a similar deal on its website on Tuesday.