The Two Ways Of Reducing The Leverage And Debt To Equity Swap Are The Same.

The start of lowering leverage and debt to equity swap has brought new investment opportunities to the market.

From the stock market perspective, as long as the implementation of market oriented debt to equity requirements is carried out to the end, the quality and efficiency of listed companies will be greatly enhanced.

This is absolutely fundamental long-term good for China's A shares.

Through the implementation of marketization of debt to equity swap, investment opportunities will be brought to various asset management institutions.

We should encourage financial Asset Management Co, insurance asset management institutions, state-owned capital investment and operation companies to participate in the marketization of debt to equity swap, encourage institutions to introduce social capital, develop mixed ownership and enhance capital strength, and support cooperation among all kinds of implementing agencies and equity investment institutions such as private equity funds.

Including private equity funds have welcomed the debt to equity investment participation opportunities.

The State Council's opinions on actively and steadily reducing the leverage ratio of enterprises and the guiding opinions on the conversion of creditor's rights to marketable banks are issued.

On the whole, the two idea is based on the full consideration of the interests of the market, experts, enterprises, banks, creditors, debtors, etc., and considering the lessons learned from debt equity swap at the end of last century.

The two opinions, the market parties, especially the creditors, should be satisfied. They basically listened to the voice of the market and experts and exceeded the market expectations, which were two very good documents.

As long as we are not lost in execution, we are confident that we will succeed in the end.

The two bright spot is the determination of marketization.

And the fundamental guiding ideology of debt to equity swap.

The implementation of marketization and legalization of debt to equity swap.

The creditor's rights, the price and the enforcement organ of the debt to equity swap enterprises are determined independently by the market participants.

The financing of debt to equity swap is also mainly market-based.

The government does not coercive the enterprise, does not enforce the bank, does not enforce the organization, does not coercive a specific creditor's rights must carry out the debt to equity swap.

Specifically, it is not the debt of the stock market, which is decided by the market players themselves, especially with the consent of the creditors.

Only in this way can we protect the rights and interests of creditors so that we can truly stand the baptism and inspection of the market.

It is clear that it is not a free lunch, and it will define the role of the government.

The debt to equity swap is decided by the relevant market players independently. If the loss is formed, who should be responsible for it and the government will not bear the responsibility for the loss. The government does not provide a free lunch.

This has drawn lessons from the last round of debt to equity swap, and debt to equity funds have been provided by the central bank and finance.

We must see the essence through the phenomenon. The essence of the central bank and the financial provision is to pay the people.

Central bank offer

Eventually, the wealth of people will be stealthy by boosting inflation, and the money directly consumed by the financial capital is the tax money of the people.

This reflects the greatest protection for creditors.

Strengthened responsibility for loss and responsibility.

In the whole process of debt to equity swap, the principle of absorbing losses before equity is implemented.

If the loss of assets is recognized in the process of debt to equity swap, the cost must be borne by the original shareholders first.

I applaud this rule.

The protection of creditors' rights and interests is the embodiment of social equity and justice, the core requirement of fair and just market economy, and the necessity of ensuring the benign circulation and development of the economy.

This must be firmly maintained.

There are institutional arrangements to prevent bank debts.

Through the implementation of institutions to carry out market-oriented debt to equity swap.

A bank shall not directly convert its creditor's rights into equity.

The bank should turn the creditor's right into equity, and it should go to the implementing organization.

The way of pferring creditor's rights into object enterprise equity is realized by the implementing agency.

This mechanism avoids the direct debt to equity swap between debt enterprises and creditor banks, which directly leads to creditors' banks being difficult to get rid of, and is always dragged down by enterprises.

All these highlights have lessons in history, and are also the biggest concerns of the market.

Almost all of these two ideas were taken into consideration.

The system of direct equity and equity financing must be introduced as soon as possible.

Otherwise, after the stock loans and other liabilities are converted into shares, the scale of the new indebtedness financing will expand.

We must open up channels and ways to equity financing for enterprises.

In the opinion of reducing leverage, it is clear: actively develop equity financing.

It puts forward the requirements of "accelerating and perfecting the multi-level equity market, promoting the steady and healthy development of the stock exchange market, innovating and enriching equity financing tools, and broadening the sources of equity financing funds".

The most important thing is to launch the IPO registration system as soon as possible.