Local AMCs gain another tool for relieving real-economy entities, and the expansion of market-oriented debt-to-equity swap qualifications is underway.

Recently, Jiangxi Provincial Financial Asset Management Co., Ltd. announced that it has been approved to carry out market-oriented debt-to-equity swap business. A China Securities Journal reporter's survey found that since the Financial Regulatory Administration clarified in July last year that qualified local AMCs may carry out this business, a number of local AMCs have successively obtained approval, and some institutions have already implemented their first projects. Equity-debt combined business tools have opened up new space for local AMCs to advance investment banking-style transformation and participate in regional debt resolution and listed company relief. However, industry insiders acknowledge that the business as a whole is still in an exploratory stage, and local AMCs need to build systematic capabilities in areas such as capital, talent, risk control, and exit mechanisms.