(Yicai Global) July 10 -- China's central government-run enterprises have steadily shed debt and optimized their liability structure and the liabilities of key industries have continued down, information China's State-Owned Assets Supervision and Administration Commission released on its official website shows. 

SASAC Chairman Xiao Yaqing made this statement at a conference on reducing central enterprises' debt held in Beijing on July 6.

These firms must adjust and optimize their investment structure and wean themselves from investment heavily dependent on debt, Xiao directed. They must also continue to deepen supply-side structural reform, address the problems of 'zombie and struggling enterprises' and resolve overcapacity issues, as well as comprehensively bolstering their fund and cash flow management to more efficiently using capital.

He called on these state-backed companies to further optimize asset quality, carry out market-oriented debt-equity swaps and mixed-ownership reform, and lower debt. Central enterprises must enhance their overall risk prevention and control financial, bond and debt risks to avert the occurrence of critical hazards, he advised.

SASAC disclosed no further details on its website.

The average debt ratio of central SOEs was 66 percent, down 0.3 percentage point over the beginning of the year and 0.4 annual percentage point by the end of May, data show.

Editor: Ben Armour