Iron ore weakness to continue into 2025 and beyond, says Fitch Solutions’ BMI
Looking beyond 2024-2025, BMI analysts maintained their view that iron ore prices will likely follow a multi-year downtrend.
BEIJING, Dec 4 (Reuters) – China’s Chalco said on Monday eight investors, including state-run asset management firms and insurers, had taken part in a 12.6 billion yuan ($1.9 billion) debt-for-equity swap at four of its business units.
The move by Chalco, the listed vehicle of China’s biggest state-run aluminium firm Chinalco, is the latest example of the Chinese government’s efforts to reduce debt at state-owned companies and make them more efficient.
Huarongruitong Equity Investment Management Co. Ltd, China Cinda Asset Management Co Ltd, China Life and newly set-up debt-for-equity units under Bank of China and ICBC are among the investors, Chalco said.
The four Chalco units are Chalco Shandong, Chalco Zhongzhou Aluminum Co, Baotou Aluminum Co and Chalco Mining.
The Chalco investment came just two weeks after a 40-billion yuan debt-for-equity swap at Chongqing Iron and Steel Co.
China unveiled guidelines last year to reduce rising corporate debt, including encouraging debt-for-equity swaps. As of Sept. 22, 77 companies in China had conducted debt-for-equity swaps worth more than 1.3 trillion yuan. ($1 = 6.6175 Chinese yuan renminbi)
(Reporting by Chen Aizhu; editing by Alexander Smith).
