Banks will establish financial asset....>

CHINA PRESS: Banks will establish financial asset investment companies to

implement debt-to-equity swaps, according to a new series of regulatory measures

published by China Banking Regulatory Commission (CBRC), reported Financial

News. 

  - Financial asset investment companies are allowed to channel funds through

financial bonds, bond repurchases and interbank borrowing, said the newspaper. 

  - The credit risk weight of the single debt-to-equity swap programme will be

150%, aligned with the standard of four major assets management companies. 

  - After the PBOC released CNY500 billion to support the debt-to-equity swap

programme on June 24, these new regulatory measures will further expand sources

of capital and ease capital pressure, noted the newspaper.