PBOC advisor out on Bloomberg
- as long as CPI is below 3% it wil be good
- China had concerns on deflation earlier
- some increases in consumer prices not a bad thing
Reuters have what they consider an exclusive with this one citing two sources close to the scene:
- PBOC will allow banks to swap bad debt for equity
PBOC is preparing regulations that would allow commercial banks to swap NPLs for stakes in those firms who owe them the money.
In theory this would reduce the leverage of indebted companies, reduce the cost of servicing debt and then would free up more cash for lending/investment as China tries to liven up its flagging economy.
The Reuters sources say the new changes would be announced soon.
