When it was announced in October 2016, Beijing’s plan to expand debt-for-equity swaps into the private sector was hailed as the ultimate solution to China’s notoriously onerous corporate debt problem.
Nearly 18 months on, the impact is yet to be seen.
China Inc’s non-performing assets have shown no sign of shrinking, rising to over Rmb1.7 trillion $270 billion as of the end of last year from Rmb1.27 trillion by the end of 2015, according to China Banking Regulatory Commission.
Still, it is just a matter of time before Beijing's debt-for-equity swap initiative proves a success, provided it can improve the regulatory environment so...
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