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BEIJING, May 22-- China will set up a proper pricing mechanism for debt-to-equity swap programs and develop new approaches to pursuing swaps to promote market-oriented, law-based debt-to-equity swap. The goal is to help ease companies' debt burdens and boost their vitality, a State Council executive meeting chaired by Premier Li Keqiang decided on Wednesday. Premier Li pointed out that all debt-to-equity swap programs must be carried out in a market-oriented, law-based and category-by-category manner. Competent government departments should provide policy support and enhance inter-agency coordination. It was pointed out at the meeting that a market-oriented, law-based debt-to-equity swap is an important measure to help companies with promising market potential to tackle the debt burden, promote steady growth and prevent risks. Debt-to-equity swap programs worth over 900 billion yuan (about 130 billion U.S. dollars) have been implemented since early last year, resulting in a marked improvement in the performance of the companies concerned. "Our efforts in pursuing market-oriented, law-based debt-to-equity swap in the past few years have paid off. Work on this front has come to a crucial juncture, and will play an important role in fostering an enabling business environment and energizing market vitality," Li said. "Without success of this endeavor, China's capital markets can hardly flourish." The meeting decided to set up a proper pricing mechanism for the swap, and refine the mechanism of exempting liability in case of due diligence in the State-owned enterprises and implementing agencies. | 
