China Signals Easing Deleveraging Stance on Big State Firms
- State asset regulator says large SOEs’ bond size is reasonable
- Rapid deleveraging may lead to many problems: analyst
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China said it will focus on maintaining debt levels at the largest state-run firms rather than deleveraging, which may reassure investors after a wave of defaults at smaller firms.
State-owned enterprises’ credit ratings are at a good level and their bond size is generally reasonable, Peng Huagang, spokesperson of State-owned Assets Supervision and Administration Commission, said at a briefing Tuesday. SASAC is responsible for managing SOEs.