Author(s)

Youwei Chu

Corresponding Author

Youwei Chu

Abstract

As the backbone of China's national economy, state-owned enterprises are in a dominant position in key areas of the national economy. They also play an important role in ensuring sustained, rapid and healthy development of the national economy. At present, traditional base enterprises, especially state-owned enterprises, are faced with opportunities and challenges of transformation and upgrading. Meanwhile, state-owned enterprises in traditional industrial bases have accumulated high debts during their development and growth, and the debts have grown rapidly. Now, they have become a hidden danger for the sustainable and healthy development of the national economy, which urgently needs to be properly solved. Based on the economic law and the mechanism of financial leverage, this paper analyzes the current situation of high debt of state-owned enterprises in China's traditional industrial base and the importance of "deleveraging", and puts forward some specific strategies of "deleveraging" of state-owned enterprises.

Keywords

Deleveraging; Enterprise Transformation; Traditional Industrial Base