2016-10-11

How to Get Chinese Household Deposits Into Equity?

iFeng: 债转股通过哪些方式将居民储蓄转化为股本投资
Implementation of good debt, debt financing and the need to open up the channel between the equity investment. Our corporate debt ratio is high, an important reason for China's savings rate is up to 50% in equity financing underdeveloped, a large number of deposits into the banking system through loans and corporate bonds, corporate debt financing led to a greater reliance, debt ratio Natural easier than in other countries is higher.

...At the operational level, may consider the establishment of the company through a bank fund, issuing mutual funds, insurance companies and other acquisitions mixed mode, so that part of residents' savings deposits into investment in equity funds. This requires the development of integrated management of the bank, and the corresponding reform of the financial regulatory system.

...Currently, the world's top 20 largest banking group in the top 20 insurance companies all have a diversified business structure and business model. In the future, banks should be encouraged to have the conditions to develop an integrated management, allowing banks to set up a special asset management subsidiaries or the acquisition of an insurance company, through various forms of PE, VC, insurance, mutual funds, mobilize savings into equity investment enterprise, the introduction of innovative thinking to carry out the debt.
Or do a bail-in and transfer all the state assets to households as part of a recapitalization of the banking system.

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