Equity financing will be central to supplying Chinese companies with long-term capital and ween them off debt, state-run media report, particularly following a string of recent corporate defaults.
An improved direct financing infrastructure would provide enterprises with capital for investment and R&D without having to resort to credit, said vice-chairman of the China Securities Regulatory Commission (CSRC) Jiang Yang.
As Reuters notes, in 2018 so far 10 issuers have defaulted on principal or interest payments on bonds totalling RMB 14.6 billion ($2.29 billion), compared with around 18 defaults for 2017 as a whole.
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