Legal Regulation Of Risks Of Asset Investment Corporation Under Market-Oriented Debt-to-Equity Swaps

At present,China's enterprises have high debt ratios,and the growth rate of non-performing loans of commercial banks has accelerated.In order to achieve"deleveraging"and promote supply-side reform,China has launched market-oriented debt-to-equity swaps.Asset Investment Corporation("AIC")is a specific product produced under this round of debt-to-equity swaps.It is set up by commercial banks as a major shareholder.Commercial banks participate in market-oriented debt-to-equity swaps through AIC to dispose of their own non-performing assets,so that enterprises can break away from financial difficulties as well as preventing and defusing financial risks."Newborn"AIC is involved in market-oriented debt-to-equity swaps in the face of many risks,but there are not many studies on AIC right now.This paper takes the risk of AIC as the research object,and classifies the risks into two aspects,and carries out targeted regulation on different risks from the perspective of law.The main contents of this paper are as follows:The first chapter introduces the two-round debt-to-equity swaps in China's history,including the policy debt-to-equity swaps and the current round of market-oriented debt-to-equity swaps,which leads to the introduction of AIC's background and business scope.Through the comparison between AIC and AMC,the significance and role of AIC in market-oriented debt-to-equity swaps are explained.The second chapter defines the scope of AIC's risk,and classifies the risks into micro-prudential and macro-prudential risks brought by AIC in the market-oriented debt-to-equity swaps to China's financial market.Micro-prudential risk is the risk that AIC launches while doing debt-to-equity swaps business;macro Prudential risks include the regulatory risks of AIC and the possibility of conflicts of interest and risk contagion with commercial banks.The causes of the two risks and the current legal regulation are specifically introduced.The third chapter proposes recommendations of legal regulation based on the different types of risks and their causes as well as regulatory status:firstly,under the principle of combining commercial banks with government policy guidance,actively respond to and prevent micro-prudential risks;secondly,improve China's regulatory system and establish a "firewall" between AIC and commercial banks to regulate macroprudential risks.