Beijing Oct 10 China's planned debt-to-equity
swap programme will target high-quality companies that face
temporary difficulties, a vice chair of China's state planner
said in a news briefing on Monday.
Lian Weiliang, a vice chairman of the National Development
and Reform Commission (NDRC) also added that so-called "zombie
firms" will be strictly forbidden from conducting debt-to-equity
swaps, while the authorities will not force banks to conduct the
The government will not be responsible for losses accrued
during the debt-to-equity swap process and the market-oriented
swaps will not be a free lunch for firms.
The NDRC earlier released a document ahead of the news
conference in Beijing, pledging that China must take action to
reduce high corporate debt.
(Reporting by Kevin Yao and Beijing Monitoring Desk; Editing by