Shanxi to Address Existing SOE Debts, Official Says

The province of Shanxi has vowed to restructure the debts and liabilities of its local state-owned companies and avoid adding risk to financial institutions, said Vice Governor Wang, according to an official WeChat blog. Wang was commenting after a bond default by Yongcheng Coal Group, an SOE in the neighboring Henan province, roiled the market this month and drew scrutiny over China's ageing domestic coal miners. Wang stressed that Shanxi, a province with a high concentration of coal mines. will increase securitization by SOEs and implement digitalized management systems to aid with clearance, reduce costs and increase efficiency, and balance the ratio of assets to liabilities. The aim was to limit an escalation of debt among SOEs.