China intensifies push to cut debt with steps to reduce leverage

Beijing

CHINA released guidelines for reducing corporate debt while also saying that the government will not bear the final responsibility for borrowing by companies, the latest sign that policymakers are stepping up their fight against excessive leverage.

The State Council, China's cabinet, issued guidelines for reducing corporate debt and for how banks may swap bad debt to equity. At the same time, officials from the central bank and other government regulators held a briefing at which they described corporate leverage as high among major global economies.