Guo Shiliang: Debt To Equity Swap Officially Started

In the implementation of the new round of debt to equity swap, the risk factors still need to be highly valued. In the initial stage of implementation, it is a process of crossing the river by feeling the stones. During the period, it is still necessary to explore and improve repeatedly, so as to further reduce its overall risk of uncertainty.

As for the concept of debt to equity swap, short-term boost, long-term impact remains to be seen, but it is not ruled out that market funds are still holding the "catch up and run" attitude to operate.

The guiding opinions on the conversion of creditor's rights to marketable banks have been officially released, which means that a new round of debt to equity swap is officially launched.

The economic downturn, the superposition of enterprise default risk, and the long-term rigid payment phenomenon have been repeatedly impacted in recent years.

This shows that in the face of a series of incidents, a new round of debt to equity swap is endowed with a new historical mission.

Perhaps, from the perspective of directness, the implementation of the debt equity swap will, on the one hand, reduce the leverage of enterprises, and lighten the burden for some key strategic enterprises, highly indebted and heavily burdened growth enterprises and enterprises that are difficult but still expected to reverse because of the cyclical fluctuations in the industry. On the other hand, they will resolve the crisis for the long-term bad debts of banks.

In addition, with the help of the debt to equity swap, the main body of banks has gradually changed from creditors to shareholders, and the final effect of the new round of debt to equity swap still needs to be observed.

The implementation of debt to equity swap has brought another vitality to some enterprises that are facing difficulties in some stages.

However, for the debt to equity swap, it is not a complete reversal of the fate of the debt to equity swap companies.

Among them, the emphasis is on marketization and rule of law. This is the biggest bright spot, indicating that there is a fundamental difference between the new round of debt to equity swap and the debt to equity swap 17 years ago.

At the same time, in specific operations, debt pfer will still be pferred.

And other factors, based on the fair price of the market to give independent consultations to determine, this is also an important aspect of the current round of debt to equity swap.

In addition, emphasizing the marketization does not reveal the whole situation, in fact, it also reflects the implementation principle of the new round of debt to equity swap, which is both an opportunity and a challenge for the participants.

Perhaps, for the current stage of debt to equity swap mode, it is more like an exploratory period.

The spread of debt to equity swap is directly related to the concept of debt to equity swap.

Among them, for example, high debt listed state-owned enterprises, cyclical industries, especially listed companies with cyclical key industries and the concept of non-performing assets management, are directly beneficiaries under the current round of debt to equity swap mode.

Affected by this, part of the concept of debt to equity swap has also gone out of the trend of sharp rise, and some varieties can be described as "soaring share prices".

However, we still need to treat the concept of debt to equity swap soaring.

At the same time, from the actual impact, the implementation of the new round of debt to equity swap will undoubtedly have a direct positive impact on the relevant beneficiary sectors and the benefit of listed companies.

Among them, for the beneficiary side,

The implementation will help reduce the leverage ratio of enterprises, reduce burden and burden, and rejuvenate. This will undoubtedly affect the future earnings expectations and valuation of enterprises.

As for banks and other participants, it is conducive to resolving problems such as bad debts, indirectly improving profit expectations, and the enthusiasm of the entire stock market can not be underestimated.

As a result, the concept of debt to equity swap has been touted by market funds, that is, what can be expected.

However, as mentioned above, the new round of debt to equity swap is still an opportunity and challenge.

Under the actual circumstances, as a participant in banks and so on, they can not easily carry out debt to equity swap for any enterprise.

It has the ability to reduce participation risk.

At the same time, from the perspective of the new round of debt to equity swap mode, for the participating enterprises, their quality is not too bad, many enterprises are only part of the difficulties, but after a certain period of time, there is still a warmer expectation, which also brings certain guarantee to the participants such as banks.

However, the spread of debt to equity swap often means the participation of banks and other participants. The future role will change from creditors to shareholders or even long-term shareholders, which will bring uncertain expectations to their future capital recovery and cash flow.

Once the market parties can not handle the relationship well, or the business management capability is still not improved in essence, this will undoubtedly bring some risks to the participants, and it is also a bigger test.