An important direction to defuse financial risks today is to de-leverage businesses. After the highly leveraged centralized management of the financial institutions for the first half of the year of the Central Bank, China Securities Regulatory Commission, China Insurance Regulatory Commission, and the China Banking Regulatory Commission, the de-leveraging of the businesses gradually comes to the fore. Debt-to-equity swap has an important role in helping companies to de-leverage, yet the market-oriented debt-equity swap would involve the complex financial division of labor within the co-operation. If the underlying market infrastructure is absent, the so-called "market-oriented" debt-to-equity swap promoted by the policy can only create more distortions in the market, thereby increasing the risk of the banking system. In the future, policy makers in China need to fill the related gap through meticulous legal system and market-orientation to truly achieve financial reform and to promote de-leveraging of businesses.