Free Trial

China's deleveraging campaign should focus....>

CHINA
CHINA: China's deleveraging campaign should focus next year on nonfinancial
state-owned companies, particularly "zombie" companies, to improve productivity,
Huang Yiping, an academic and a member of the Monetary Policy Committee of the
People's Bank of China, said in an article published Monday on the website of
the Finance40 Forum, an official think tank. The leverage ratio of state-owned
enterprises has barely changed even as the overall campaign has had unexpected
success. The existence of "zombie" companies -- money-losing companies that rely
on government support -- is because of the implicit guarantee of governments.
China can continue to improve efficiency in financial sector through curbing
shadow banking, reducing growth in the so-called M2 money supply and increasing
direct funding, Huang wrote.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.