State-owned Enterprises Must Deleverage ASAP: Xi Jinping

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Chinese president Xi Jinping has called for the country’s state-owned enterprises to reduce their leverage levels as soon as is possible.

At a meeting of the Central Finance and Economics Affairs Commission convened on 4 April, Xi said that the prevention and dissolution of financial risk means making “structural deleveraging the fundamental thought path.”

“Local governments and enterprises – in particular state-owned enterprises, must deleverage as soon as possible, and endeavour to achieve a steady and gradual reduction in macro-leverage levels.

“The prevention and dissolution of financial risk relates to national security, overall development, the property and safety of the people, and is the key threshold that we must cross in order to achieve high-quality growth.”

 

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