(Yicai Global) Aug. 31 -- The State-Owned Assets Supervision and Administration Commission (SASAC) is responsible for debt-related risk management at enterprises directly under the central government (central enterprises).
Xiao Yaqing, its chairman, advised central enterprises to effectively implement deleveraging and debt reduction measures focusing on seven key areas, including prevention of bond default risks.
Xiao said this at a teleconference on central enterprise deleveraging SASAC held Aug. 29. The other six key areas are tightening control over heavily-indebted companies, intensifying financing operations, steadily advancing market-based debt-for-equity swaps, scaling up equity financing, disposing of 'zombie companies' and giving full play to state-owned asset operating companies' function.
Central enterprises should reinforce capital controls, further tap into existing assets, develop direct financing, promote 'mixed ownership' reforms, increase equity financing for major projects and replenish capital through multiple channels, Xiao advised.