Due to the special status of the state-owned enterprises (SOEs) in China's economy, the reform of SOEs has always been an important part of China’s economic reform.

Under enormous pressure, a new round of SOEs reform has just kick-started and the securitization of asset has become one of the important means to reform the local SOEs.

ANBOUND’s research team is of the view that the Chinese government should not see the securitization of asset and the debt-to-equity swap as merely the means to save the state-owned economy but the Chinese government should also take this opportunity to reform and address the shortcomings in the system that has caused inefficiency in SOEs

Serious political will is needed.