China's purported plan to reduce corporate-sector leverage and rejuvenate economic growth through debt-for-equity swap programmes will face significant challenges from stakeholder-interest misalignments and obstacles of new capital sourcing. China's State Council mentioned debt-for-equity swaps as a way for corporates to reduce financing costs in its work report published in August 2016. Local press 21st Century Economics Journal and Caixin Magazine reported recently that state-owned Sinosteel Corporation (Sinosteel) and Bohai Steel Group Company Limited (Bohai Steel), both financially distressed, had reached ... (full story)