PBOC Official: Debt to equity swaps cannot fundamentally corporate resolve debt problems

Head of Research at the PBOC made some comments on the country’s debt problems, via Reuters.

Debt to equity swaps cannot fundamentally corporate resolve debt problems.

Mixed ownership reforms at State firms have not improved corporate governance.

China needs to improve local Govt finances to help tackle local Govt debt problems.

China could face risks of a big crisis if economic reform is too slow.