According to the government work report, China’s non-financial companies have a higher leverage ratio, which is related to the high savings rate and the financing structure based on credit. But in practice, why do non-financial companies have high leverage ratios? How to understand it and take corresponding measures?Professor Liu believes that from the perspective of supply-side structural reforms, it is necessary to transfer the market resources, material resources and credit resources that are stagnated and occupied in low-productivity and high-risk sectors to industry departments and enterprises with higher productivity and greater market demand, which is the area where the government should focus on. Under the current system, it is necessary to resolutely harden the investment budget constraints on state-owned enterprises and strengthen the constraints and management of their own debt leverage. In this regard, the most important thing is to act in accordance with the laws of the market economy. At the same time, most of the current liabilities of local government investment and financing platforms are the liabilities of local state-owned enterprises. They have the characteristics of large scale, strong concealment, and high risk. They are the main source of debt risk and should be paid attention to.
