China Banking Regulatory Commission intends not to lose the trust of those enterprises zombie business information channel _ _ net _ Chinese accounting perspective needed to accountants - CPA | Certified Tax | Accounting titles | Senior Accountant | Accounting practitioners

According to the China Banking Regulatory Commission website August 7 news, "commercial banks to implement the new debt-to-equity swap management agencies (Trial)" (draft) open for comments. The proposed draft, the agency shall not be "zombie enterprises", the enterprises, enterprises and other enterprises to implement debt-to-equity swap; commercial banks in the new debt-equity swap implementation agencies, to ensure that the proportion of capital contribution of not less than 50%. For enterprises that want to give priority to debt-for-equity operations, the draft suggests that it is necessary to carry out market-oriented debt to those high-quality enterprises with good prospects for development but which are temporarily difficult to meet, including difficulties due to cyclical fluctuations in the industry but still Reversal of enterprises; growth-oriented enterprises with high financial liabilities due to high indebtedness, especially those in the strategic emerging industries; high-risk enterprises in the forefront of overcapacity industry and strategic enterprises related to national security. Other suitable for the implementation of the market-oriented debt to convert the enterprise. In addition, the bank through the implementation of institutions to implement debt-equity swap, the bank should be the first to the implementing agencies to transfer claims, and then by the implementing agencies to convert the debt to the object of corporate equity. Banks may not convert claims directly into equity, except as otherwise provided by the State. For the industry 's general interest in the requirements of the new debt - for - equity institutions of the commercial banks, Article 9 of the draft suggests that the implementing agency shall be the principal contributor of a commercial bank incorporated in the territory. The chief investor is the largest shareholder of the proposed implementing agency, and the proportion of its contribution is no less than 50% of the total share capital of the proposed implementing agency. The main investor 's commercial bank shall, in accordance with the requirements stipulated in the Guidelines on the Administration of Concurrent Management and Supervision of Commercial Banks, incorporate the implementing agencies into the form and management. Article 11 of the draft for the implementation of institutional investors do not have the provisions of the corporate governance structure and mechanism there are obvious flaws; equity relationship is complex and opaque, related party transactions abnormal; core business is not prominent and its business scope involved The cash flow rate is significantly higher than the industry average; on behalf of others to hold the implementation of institutional equity; other implementation agencies have a significant adverse impact on the situation. As an implementing agency, its establishment must be established and opened two stages. The implementation period of the implementing agency shall be 6 months from the date of approval of the decision. If the construction fails to be completed on schedule, the construction and extension report shall be submitted to the CBRC one month before the expiration of the construction period. The extension shall not exceed one time and the extension period shall not exceed 3 months. The applicant shall submit the application for opening before the expiration of the time limit stipulated in the preceding paragraph, failing to submit the application for approval, and cancel the approval document. In addition, the draft also specifically requires the implementing agencies should be from the date of receipt of business license within six months from the date of opening. If the business can not be opened on schedule, the issuance extension report shall be submitted to the CBRC one month before the expiration of the opening period. The extension shall not exceed one extension and the extension shall not exceed 3 months.