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Efforts to cut leverage ratios have started to bear fruit, as debt over the asset ratio of major industrial enterprises declined in the first half, the Development and Reform Commission said on Tuesday.

By the end of June this year, the debt to asset ratio of China"s major industrial enterprises stood at 55.9 percent, down by 0.8 percentage points compared to the same period last year, data from the National Statistics Bureau showed.

More than 70 enterprises in overcapacity sectors have signed agreements to launch debt-to-equity swap programs, according to the commission, allowing banks that hold debt in enterprises to convert such debt to equity in the company.

The commission said the government will adopt market-based principles while dealing with debt problems of debt-laden zombie factories.


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