Reducing financial risks is the top priority of the three critical battles (i.e., forestalling and defusing major risks, carrying out targeted poverty alleviation, and preventing and controlling pollution). However, there are different views on how to precisely deleverage while ensuring effective risk control. In face of the recent exposure of a series of debt default risks, some people believe that the comprehensive deleveraging policies, represented by the new regulations on asset management, will cause the incorporation of a large amount of off-balance-sheet funds into the balance sheet, which is not conducive to the rational release of credit and economic stability and is likely to cause liquidity risks. Besides, they not only fail to deleverage the zombie state-owned enterprises, but also cause collateral damage to private enterprises. Therefore, they believe that the current financial deleveraging policies should be adjusted properly. Professor Liu Zhibiao, Dean of Yangtze IDEI, held discussions with relevant experts and scholars on “Reducing Financial Risks Through Deleveraging: Views and Actions” in the context of the China-US trade war, and relevant suggestions were proposed.
