www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Business / Economy

Debt reform takes a lower priority to stabilizing growth

By Zheng Yangpeng (China Daily) Updated: 2015-06-02 09:02

Recent policy directives from the Chinese authorities point toward a renewed emphasis on "stabilizing growth". The shift is broad, but the most straightforward implication is that the target of sheding debt pileup could become more elusive.

The latest signal of a priority shift came on May 25, when the National Development and Reform Commission loosened restrictions on bond issues by State-owned enterprises. Issues will not be subject to a quota as long as the proceeds are used to invest in "seven key sectors", which span a broad range of industries.

Analysts worry that this shift will give SOEs too much leeway to repackage their projects and sell them to the NDRC. Local government's off-balance sheet financing vehicles account for a majority of the issuers.

A week earlier, the Ministry of Finance, the People's Bank of China and financial regulators jointly issued a directive, instructing commercial banks to keep extending loans to LGFVs' projects if work had commenced before the end of 2014. Banks were also told to extend the maturity of such loans if LGFVs could not repay the debts on time.

The shift is "the most significant policy easing so far in 2015", Deutsche Bank AG economist Zhang Zhiwei said immediately after the directive. "It is a 180-degree reversal of the fiscal policy from tightening to loosening."

The easing in conditions for LGFV funding was not an isolated move. Last December, the State Council issued a landmark document, known as Circular 62, limiting the ability of local governments to offer tax breaks and other preferential policies to companies in their jurisdictions. Investors and local governments cried foul, as competing preferential policies from local governments for years constituted a major appeal to investors, domestic and overseas alike. The circular was put on hold by the central government, a move that was celebrated by investors.

At the center of the policy mix is Beijing's determination to bolster investment and meet the 2015 GDP growth target of "about 7 percent". Expansion in the first quarter sank to a six-year low of 7 percent. To realize the full-year goal, the reform agendas embodied in Circular 62 and other policies have to give way.

Reform advocates have been quick to criticize the latest moves, saying the changes were proof that the authorities are reluctant to abandon the credit-and investment-fueled growth path. They pointed out that this "downshift-response-improvement-dip again" cycle played out in 2012, 2013 and 2014. Will it happen again this time?

In recent years, despite government pledges that the economy would deleverage, leverage has actually risen. At the end of 2014, the corporate debt-to-GDP ratio stood at 178 percent, while total debt (government, household and corporate) was 244 percent of GDP. In Asia, that figure was surpassed only in the more developed and wealthier economies of Japan, South Korea and Singapore.

Austerity proponents argued that with such a highly leveraged corporate sector, no wonder that the interest rate cuts and liquidity injections of the past six months had failed to generate a turnaround. Indebted corporations have little appetite for new credit. When they do borrow, it is to repay old debt. Banks became ever more cautious in lending to these companies, despite ample liquidity.

Conclusion? Any credit loosening should be conditioned on meaningful deleveraging.

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks
...
主站蜘蛛池模板: 欧美男女网站 | 亚洲专区一 | 久久精品6 | 黄色影院在线 | 久久99国产亚洲高清观看韩国 | 欧美激情 自拍 | 精品成人久久 | 免费成人高清视频 | 国产高清天干天天视频 | 99在线热视频只有精品免费 | 国产97视频 | 全免费a级毛片免费看不卡 全免费毛片在线播放 | 一级黄视频 | 欧美a级在线观看 | 日本国产在线视频 | 亚洲国产精品第一区二区三区 | 成年男女免费视频网站播放 | 欧美成人一级片 | 国产一区二区免费播放 | 看中国一级毛片 | 亚洲ay| 国产三级日本三级美三级 | 国产欧美在线一区二区三区 | 亚洲国产成人精品久久 | 午夜精品亚洲 | 中文字幕在线看视频一区二区三区 | 日本在线观看免费看片 | 高清性做爰免费网站 | 91精品国产91久久 | 日韩成人在线观看 | 久久九九精品一区二区 | 一级女性全黄生活片免费 | 国产黄色在线播放 | 成人国产精品一级毛片天堂 | 国产欧美日韩一区二区三区在线 | 久久精品国产亚洲综合色 | 久久精品高清视频 | a免费视频 | 男女福利社 | 欧美三级一区二区 | 欧美一区二区三区免费不卡 |