债务股(国外英文资料).doc

债权股 Over the years, the problem of high indebtedness in state-owned enterprises has aroused high concern in policy-making and theoretical circles. For improve the quality of bank assets, reduce the financial risk, reduce the purpose of the state-owned enterprise debt burden, since last year has carried on the part of the reform of state-owned corporate bonds convertible. With the formation of the respective asset management companies of the big four state-owned commercial Banks, the debt-to-equity swaps were implemented. According to the Peoples Daily on February 19, 2000, the national economic and trade commission (csetc) has reviewed the recommendation of 601 debt-for-equity transfer enterprises by the end of January 2000, totaling 459.6 billion yuan. As a direct result, debt-for-equity swaps can rapidly improve the balance sheets of Banks and companies. But there is also debate over debt-for-equity swaps. Focus on two issues: first, will the debt-for-equity swap make the state-owned enterprises out of the woods? Second, how to prevent debt-for-equity swaps from becoming debt forgiveness and overcoming the formation of new bad debts? The answer to these two questions is not either. It depends on whether the reform of the debt-for-equity reform is appropriate and whether the reforms are in place. The following is detailed analysis. The comparison of debt and equity: the policy orientation of the debt-for-equity swap It is necessary to start with the characteristics of debt financing and equity financing. The unit cost of different financing methods is different from the unit cost of financing in different ways. The general rule is that the unit cost of debt financing is lower than the equity financing. Companies have to provide investors with a return on their capital, which is essentially a reflection of the cost of funding. The return is made up of a risk-free rate plus a risk premium. The risk-free rate of return is the same in all forms of financing, so the re