The 10 trillion debt-to-equity swap is here! A-shares are expected to strengthen, these sectors may benefit.
On November 8th, the 12th meeting of the 14th National People's Congress Standing Committee (hereinafter referred to as the "meeting") concluded. The meeting reviewed and approved the most significant debt-to-equity swap measures in recent years, attracting high market attention.
The latest meeting of the China Securities Regulatory Commission, wu qing, Shi Meilun and others attended.
On November 8th, the 21st meeting of the International Advisory Committee of the China Securities Regulatory Commission (referred to as the "Advisory Committee") was held in Shanghai in a combined online and offline manner.
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How will the large-scale debt of 10 trillion affect the market? Institutions and public funds interpret it for the first time.
①Is the debt-to-equity policy meeting expectations? ②Institutions believe that large-scale debt restructuring is necessary and very timely; ③Improved liquidity is driving bond and pro-cyclical asset performance; ④There is still room for future incremental policies.
What is the impact on the economy after the new debt-for-equity swap policy is implemented?
For residents, after reducing the pressure of local government debt repayment, more fiscal resources will be available to tilt towards people's livelihood, which helps restore residents' confidence.
10 trillion debt-for-equity swap, real estate tax policies will be introduced in the near future... One article to understand the NPC press conference
Starting from 2024, China will allocate 800 billion yuan from the annual increase in local government special bonds for five consecutive years, specifically for debt restructuring, with a cumulative potential to replace 4 trillion yuan in hidden debt. In addition, with the 6 trillion yuan debt ceiling approved by the National People's Congress Standing Committee this time, it will directly increase local debt resources by 10 trillion yuan.