China’s rising debt levels concern investors and banking authorities, but regulators are becoming increasingly active in passing policies aimed at controlling debt and managing risks to the economy. While some analysts are cautious about China’s rising debt, others remain optimistic about the government’s ability to manage the issue.
Limited progress on State Owned Enterprise (SOE) reform continues to undermine US industry’s confidence in China’s policy direction, but recent announcements limiting SOE outbound investment might be beneficial.
Woeful performance data from China’s state-owned enterprises (SOEs) may be increasing calls for reform, but a recent policy package does not appear to address fundamental issues around governance and market orientation, despite the accompanying rhetoric.
The State Council’s long-awaited framework for reforming China’s state-owned enterprises (SOEs) marks limited progress on areas of SOE reform such as mixed ownership, asset management, and SOE classification.