Equity-For-Debt Swaps in Chinese Big Business: A Case Study of Restructuring in One Large State-Owned Enterprise.

This study examines China's equity-for-debt swap programme by a detailed case study of the reform process in one state-owned enterprise. We examine the extent to which Asset Management Companies (AMCs) have been able to exercise their ownership rights in the state-owned enterprise as well as related reforms to wage structure, managerial appointments and separation of social welfare responsibilities are examined. The main finding is that the AMCs have been unable to exercise their bundle of ownership rights. On the basis of this finding it is suggested that it is going to take ranch longer for the Chinese government to realize its objectives compared with many previous debt-workout programmes such as Savings and Loans reform in the USA. [ABSTRACT FROM AUTHOR]