Iron and steel industry, asset-liability ratio reached 70%
Steel industry, asset-liability ratio of 60% to 70%, far higher than other industries. Therefore, the first to start debt from the steel industry overcapacity will help alleviate the debt burden of heavy industry, the pressure is too large debt situation.
Recently, the China Banking Regulatory Commission on the "on China Aluzinc Steel Sheet Coil
coal industry to resolve a number of opinions overcapacity financial claims and liabilities disposed of" (the "Opinion") comments to the relevant bodies, "opinions" to support the financial asset management company (AMC), local asset management companies, according to the market, the principle of the rule of law, to carry out the work of debt, debt statements on the object is the "backbone of steel coal enterprises." Debt as a supply-side reforms to promote a ring, and the coal fields of recent credit default swaps (CDS) and national sources coal asset management companies set up marked the power supply side of the capital market reform to push.
"First Financial Daily" reporters combing through data related institutions found that the steel industry assets and liabilities was 60% to 70%, far higher than other industries. Therefore, the first to start debt from the steel industry overcapacity will help alleviate the debt burden of heavy industry, the pressure is too large debt situation.
In deleveraging, to the production context, steel enterprises financing difficulties. Bank of iron and steel, coal and other industry overcapacity loans and other means to implement total control, and other institutions to strengthen public offering excess capacity in industry, industrial debt risk monitoring, a substantial increase in steel prices and the degree of difficulty of financing the cost of financing.
April 21, 2016, the central bank and other four ministries jointly issued "on the support steel coal industry to resolve capacity to achieve turnaround development" and proposed financial institutions should adhere to the distinction, there is help have control principle, long-term losses, loss of liquidity and market competitiveness of enterprises and backward production capacity, and resolutely quit compression related loans. China Construction Bank branch in Henan Province Huang Huai force corporate loans manager told the "First Financial Daily" reporters, the bank now has been difficult to overcapacity industries enterprise loans.
Huatai Securities chief strategist Xuehe Xiang told reporters, with the supply-side reform policies gradually fall, gradually clear path to production, iron and steel corporate debt is expected to break the negative cycle path. However Xuehe Xiang believes that the reform of the supply side, there are two not touch the bottom line, one of the local social stability, the second is not systemic, regional financial risks. Employment issues relating to local social stability has been alleviated by the matching funds the central government special awards complement and place. Thus, the debt risk is likely to become a major capacity problems.
Northeast Securities researcher Huang told reporters know, the listed steel enterprises with main interest debt financing liabilities, can be divided into bank loans and public debt market. For most listed steel enterprises, since most of them have state-owned status, so the banks to roll over loans or new borrowing the old problem is not big. But pressure steel enterprises listed on the open market debt is large, on the open market by the new-old is more difficult, higher debt issuance costs. CITIC Securities research report also believes that the debt mainly for bank loans, bonds and bond debt in particular raised the cost of large, difficult coordination, the possibility of the implementation is not significant.
From this perspective, the cost of debt is likely to be borne by the banks rather than financial capital injection. CITIC Securities strategist Huang Wentao believes that the object will select the debt is the industry leading enterprises or local enterprises, zombie companies can not participate directly in debt. May 9, "People's Daily" quoted an authoritative speech referred to "those who did not save the business, which closed on the firm closed. The bankruptcy to bankruptcy according to law, do not frequently engage in debt."
In reality, in fact, a zombie companies themselves are reluctant creditors' debt. " An iron and steel enterprises Zombie creditor to the "First Financial Daily" reporters, said zombie enterprises creditor clear, they will face increasing loss of assets, the debtor has been unable to profit from the business, but the creditor does not select the "debt conversion, "because once the" debt ", the identity of creditors become shareholders in the future will really stuck in the quagmire among enterprises. Forced neither mandatory insolvency regime, nor the "debt" subjective will, in the above view, the key is the cause of long-standing corporate zombies lies.
Soil zombie survival of enterprises has not been eradicated once lifting steel, zombie companies to immediately resume production. China Metallurgical Mining Enterprise Association official told reporters that the Chinese steel industry losses of the fundamental reason lies in the effective steel production capacity is difficult to withdraw from the market, and zombie companies "tribute."
Although the large state-owned steel enterprises a lot of problems, but as a local tax and social stability require large, latent credit guarantees local governments will still exist for some time, while local governments are trying to help steel enterprises turnaround, such as Chongqing Iron and Steel and Valin steel and other "non-steel restructuring." From this perspective, zombies closures of steel prices yet to come, but the real test of the policy are still on the road.
Many steel industry insiders told reporters, regulators force the implementation of the industry's key enterprises debt, will make the backbone enterprises in the industry to win a major reshuffle, the Matthew will be highlighted, but you should not ignore zombie companies in the steel industry Gresham's Law effect, and therefore still need to improve corporate zombies bankruptcy exit mechanism to eradicate the soil zombie business survival.