To complete the goal of coal and steel production capacity has more than 8 government debt default size

To complete the goal of coal and steel production capacity has more than 8 government debt default size

2017/06/05 12:13

  “ to promote capacity production, speed up progress, and make positive progress. At the end of September, iron and steel, coal industry two exit capacity has greatly improved, the relevant departments are verifying the progress data will be announced soon. ” 13, Zhao Chenxin, spokesman for the national development and Reform Commission, gave an encouraging message.


  To complete the goal of coal and steel production capacity has more than 8 government debt default size


  It is reported that as of the end of September, steel and coal industries two exit capacity have completed the annual task amount of more than 80%. In this regard, securities analysts said, to accelerate the production capacity of the entire industry to improve the ecology.


  In the past two months, the production schedule has been noticeably accelerated


  In the decision-making force under the push, the country's steel, coal, two industries to capacity, the completion of a substantial increase in tasks, such as Sichuan and other provinces have completed the task ahead of schedule.


  From the point of view of the process, from 1 to June this year, the country eliminated 13 million tons of steel production capacity, completed only 30% of the annual task. At the end of July, the elimination of steel production capacity is only 21 million tons, the annual task 47%. It is in this context, the decision-making layer from August began to increase the capacity to push forward.


  To production capacity in August, September progress significantly accelerated, the key is a special inspection, layers of conduction pressure. In addition, “ this year's bonus fund coefficient is high, the mobilization of the local retreat, leave early enthusiasm. "&rdquo," said Zhao Chenxin.


  In this regard, GF Securities analyst Li Sha believes that the essence of the supply side structural reform is “ &rdquo, in the premise of quality reduction; no significant decline in demand, the exit capacity, supply side contraction, will significantly improve the position of the expected corporate earnings and actual earnings, the investment value will continue to highlight.


  According to the coal capacity to lead to inadequate supply concerns, Zhao Chenxin said, to improve the current supply and demand of coal, coal supply tight in some areas, is not only directly reflects the capacity to effect, affected by some objective factors. In order to promote coal prices to maintain a reasonable level, the parties concerned have formulated plans to curb the excessive rise in coal prices, targeted measures to ensure that the country's coal supply and demand situation is basically stable.


  According to reports, at the beginning of September, the national development and Reform Commission jointly with relevant departments to formulate a stable supply of coal, coal prices rose too fast suppression plan, and start the two level response, increase coal production of about 300 thousand tons. In late September, a first level response was started, with an increase of 500 thousand tons of coal per day.


  &ldquo: no need to worry about ‘ to produce capacity ’ leading to insufficient coal supply. ” Zhao Chenxin said that the coal sector is fully qualified and capable of ensuring a stable supply.


  The government does not specify the scale of debt to equity swap


  On the issue of deleveraging, Zhao Chenxin said, we can not simply understand that deleveraging will cause economic contraction. In policy design, economic leverage will not cause significant contraction effect; in the process of policy implementation, efforts will also be made to avoid the economic contraction effect. Deleveraging requires orderly development and co-ordination, not overnight, and will not engage in “ one size fits all ” in a sense, is the first steady decline.


  “ deleveraging is not simply a reduction in leverage for all firms. Firms with high leverage and financial costs have to lower leverage. But for low leverage and high growth firms, leverage can be increased as needed. &rdquo, Zhao Chenxin pointed out that the debt to equity swap itself should be effective in reducing corporate leverage.


  According to the introduction, from the model simulation operation situation, the debt to equity swap can make the enterprise asset liability ratio generally decline about 10 to 20 percentage points, greatly reduce the enterprise financial expenses. However, the extent to which the debt to equity swap reduces the leverage ratio of the enterprise depends on the negotiation between the enterprise and the creditor as the debtor.


  Of course, “ from a macro perspective, the debt equity swap leverage effect requires a process to fully display. When the debt equity swap runs to a stage, it needs to be evaluated to obtain specific quantitative results. &rdquo, Zhao Chenxin said, "this is the market, the rule of law, debt to equity swap, so the government does not pre-set debt to equity conversion of the specific size and quantity goals.".