on august 19, the annual china equity investment summit opened as scheduled in pudong, shanghai. this summit has gathered more than 500 investment experts and scholars as well as top executives of china's top investment institutions. icg president aaron wang was invited to attend and deliver the keynote speech. at the same time, in view of icg's outstanding achievements in exploring and practicing debt reduction financing modes for state-owned enterprises in recent years, icgdrf was awarded the outstanding achievement award in the field of asset management and investment by unanimous approval of the experts of the summit, in recognition of its responsibility in promoting overseas capital to support the domestic real economy.
in the first half of this year, under the shadow of the epidemic, the global economy showed a sustained downturn. although major cities in china have already resumed work and production, the negative impact of the epidemic on business operations has not been eliminated accordingly. many small and medium-sized enterprises did not survive the cold winter of the epidemic, and eventually came close to bankruptcy liquidation. as the "stabilizer" of the national economy, state-owned enterprises are also facing a severe capital test. over the past three years, the asset-liability ratio of state-owned enterprises has remained high. according to the comprehensive report of the state council on the management of state-owned assets in 2018, in 2018, the total assets of state-owned enterprises in china were 210.4 trillion yuan, and the total liabilities were 135.0 trillion yuan. the asset-liability ratio of some soes was as high as 80 percent. guarding against financial risks and reducing the rate of debt default has become a difficult problem facing state-owned enterprises. however, with the downward trend of the macro economy and the tightening of monetary policy, the financing costs rise, which is undoubtedly a further blow to the debt reduction problem of state-owned enterprises.
when the high debt ratio of state-owned enterprises becomes a common problem, icg provides a more scientific financing solution. after years of application and practice, drf asset management has shown remarkable advantages in helping state-owned enterprises to reduce debt financing. because of its flexible and diversified financing schemes, it can achieve the dual effects of low cost financing and lower debt ratio. icgdrf assets management mainly includes: joint factoring, joint leasing, capital and share increase, debt-for-equity swap, spv project financing and reits real estate investment trust fund. enterprises can choose one or more schemes to participate according to their own operating conditions and financing needs. through the above financing schemes, icg helps state-owned enterprises to enter the international market with more favorable capital cost, reasonably introduce low-cost capital, relieve the pressure of enterprise financing cost, improve enterprise profitability, and finally solve the problem of difficult and expensive financing for enterprises.
icg in the keynote address link aaron wang, president of points out, through many years accumulation of financing cases and validation plan implementation, drf information technology can effectively help enterprises to obtain long-term financial support, revitalize the stock assets, optimize the structure of corporate debt, increase the disposable funds, help enterprise orderly stock of debt, so as to reduce at the same time in the financing of enterprises leverage effect. at present and for some time to come, the domestic economy affected by the epidemic will go through a relatively long recovery process. during this period, it is incumbent responsibility of domestic investment institutions to protect the steady operation of state-owned enterprises and prevent financial risks. icg is willing to work hand in hand with state-owned enterprises to make a modest contribution to strengthening risk barriers and accelerating the sound operation and development of enterprises.