On October 10, China's State Council unveils plans to stably reducing enterprise leverage market-oriented debt-to-equity swap; this would mean a new round of debt-to-equity swap has officially begun. Anbound research team believes that currently China's corporate sector debt (170% debt / GDP ratio) has become an unstable factor in economic operation, while the central government's deleveraging shows little progress, the "free lunch" phenomena of debt-to-equity swap is becoming inevitable in some enterprises. If this is to be avoided in the future, a number of related measures and policies should be implemented.