An upbeat report in the China Daily on the government reforms in the coal and steel industries
- has cut overcapacity and reduced debt levels among State-owned enterprises
- A research report from GF Securities Co Ltd showed that repacking debt into equity and promoting policies to revamp the supply chain are helping to transform the sectors
- "The deals will not only reduce their leverage ratio and financial pressure, but also facilitate their industrial transformation and upgrading" the report stated
- The reforms in the coal and steel sectors will also make these SOEs leaner and more able to adapt to a high-tech world.
- This in turn will cut oversupply and stabilize prices within the industries, and make these sprawling companies more competitive.
- "Output reduction will lead to a rise in prices and company profits," said Yao Yang, an analyst at Shenwan Hongyuan Securities.
The link to the article in full, here
