China Says Securitization of Nonperforming Loans Still Has a Long Way to Go

Securitizing nonperforming loans (NPLs) has had a limited impact on the reduction of NPLs since China re-launched a pilot securitization program two years ago, the Chinese government said in a recent report. The report identified four major issues that the pilot program faces, which China re-started in 2016 after putting it on hold following the financial crisis. Please login/register to view this content. Read more

China Vows Speeding Up Cleansing of ‘Zombie Enterprises’

The Chinese government is focusing on tackling debt of “zombie enterprises” while reducing the leverage levels across the state-owned sector. “The next step is to continue the de-leveraging of state-owned enterprises [SOE], with a combination of SOE reform, ridding of excess capacity and reducing costs,” the government said in a statement issued today after a State Council meeting presided by Premier Li Keqiang. Please login/register to view this content. Read more