China News Service, Hangzhou, August 24 (Reporter Hu Yixin) Currently, the world is undergoing a deleveraging process, and some listed companies have applied for restructuring, which has once again brought attention to the debt risks and liquidity crisis of listed companies. On August 24, the Public Policy Research Institute of Zhejiang University and Zhejiang Public Policy Research Institute jointly released the "2020 Listed Company Debt Index Report" (hereinafter referred to as the "Report"). The "Report" shows that the average debt index of China's various industries in 2019 has dropped significantly compared with 2018, indicating that the overall debt health of listed companies is getting better.
Professor Jin Xuejun, Executive Dean of Zhejiang University Public Policy Research Institute and Zhejiang Public Policy Research Institute, said that the debt index of listed companies measures the debt pressure faced by listed companies. The release of the debt index can enhance listed companies' active attention to their own debt health problems. Awareness, and at the same time provide a basis for investors' decision-making and policy-making of relevant government departments.
Distribution of major provinces and cities in the top 500 debt index. Photo courtesy of Zhejiang University Public Policy Research Institute issued by China News Service
According to reports, the sample selected for this report is A-share listed companies after excluding S, ST, *ST and financial companies, and a total of 3,421 listed companies. The time span of the sample is from January 1, 2019 to December 31, 2019, with a total of 244 trading days. The smaller the debt index value, the better the debt health of listed companies.
The data shows that the average debt index of various industries in 2019 has dropped overall compared with 2018, and the average debt index of the whole industry has dropped by 10.12%, returning to below 40, indicating that the overall debt health of listed companies is getting better. Among them, the average debt index of three industries has risen, namely, consumer service increased by 6.26%, food and beverage increased by 14.57%, and the pharmaceutical industry increased by 5.47%. Among them, the consumer service industry increased for two consecutive years. Real estate and construction saw the largest decline, falling 27.61% and 24.41% respectively.
The "Report" shows that the debt health of the steel industry in 2019 is the most healthy, accounting for 55.55% of the top 20% of all listed company debt indexes, ranking first in the industry, followed by 44.12% of the national defense industry and 33.33% of the textile and clothing industry. . The debt health of the food and beverage, computer and electronics industries is not optimistic.
Jin Xuejun, Executive Dean of Zhejiang University Public Policy Research Institute and Zhejiang Public Policy Research Institute introduced the debt index of listed companies. Photo by China News Agency reporter Hu Yixin
Among the top 500 companies in the debt index, Guangdong, Zhejiang, Jiangsu, Shanghai, and Beijing are among the top five companies, with 80 and 79 companies from Guangdong and Zhejiang respectively. In general, the top 500 companies in Guangdong, Zhejiang, Jiangsu, Shanghai and Beijing have commonalities in the distribution of the industry, and to a certain extent reflect the characteristics and advantages of the region.
Based on the reality of Zhejiang, Jin Xuejun suggested that the government should establish a debt pre-warning mechanism, focusing on sorting out companies with large debt factors and small financial factors, so as to achieve early identification, early warning, and early disposal, and proactively prevent and decisively deal with debt problems before they break out. Establish an emergency mechanism for debt disposal to minimize adverse effects.
In addition, Jin Xuejun suggested that it is necessary to actively carry out risk mapping work, conduct interviews with companies with higher potential risks, urge listed companies to actively disclose debt information in a timely manner, proactively disclose risks, strengthen debt education for listed companies, increase debt replacement efforts, and correct guidance Public opinion in the society takes a rational view of the debt problem.
Jin Xuejun said that the sharp decline in the average debt index of various industries shows the effectiveness of deleveraging in China's industries and allows Chinese companies to face the current economic situation more calmly. (Finish)