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China Woos Foreign Participants in Debt-cutting Effort

Oct 14 , 2016

China will welcome the participation of foreign investment firms and funds in its debt reduction efforts, an official of the country's powerful state planner said on Friday.

China unveiled guidelines this week to cut rising levels of corporate debt that some analysts fear could destabilise the world's second-largest economy. Converting debt into equity stakes will be among the measures to cut leverage.

"We welcome international investment companies and investment funds to participate in the (debt) disposal process," Sun Xuegong, deputy director general of the department of fiscal and financial affairs at the National Development and Reform Commission, said at a briefing in Beijing.

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