Recently, Jiangxi Financial Asset Management Co., Ltd. announced that it has been approved to launch market-based debt-for-equity swaps. Statistics from the China Securities News reporter found that since the General Administration of Financial Regulation made it clear in July of last year that eligible AMCs could carry out this business, many local AMCs have been approved one after another, and some institutions have already launched their first project. A business tool combining equity and debt has opened up new space for local AMCs to promote investment banking transformation, participate in regional debt resolution, and bailout of listed companies. However, industry insiders confess that the entire business is currently still in the testing stage, and local AMCs need to carry out systematic capacity building in terms of capital, talent, risk control, and exit mechanisms.

Recently, Jiangxi Financial Asset Management Co., Ltd. announced that it has been approved to launch market-based debt-for-equity swaps. Statistics from the China Securities News reporter found that since the General Administration of Financial Regulation made it clear in July of last year that eligible AMCs could carry out this business, many local AMCs have been approved one after another, and some institutions have already launched their first project. A business tool combining equity and debt has opened up new space for local AMCs to promote investment banking transformation, participate in regional debt resolution, and bailout of listed companies. However, industry insiders confess that the entire business is currently still in the testing stage, and local AMCs need to carry out systematic capacity building in terms of capital, talent, risk control, and exit mechanisms.