Debt-To-Equity Can't Be The Only Way to Deal With Corporate Debt

One of China's biggest problems at the moment is debt, especially in the non-financial enterprise sector.

To solve the problem, the State Council published on Oct. 10 a guiding opinion on reducing the leverage ratio of enterprises. Along with that document, it also released detailed guidelines on how to implement a swap program that will see loans that companies borrowed from banks converted into equity capital.