Beijing: China unveiled guidelines on Monday to reduce rising corporate debt levels which some analysts fear could destabilise the world’s second-largest economy. The government will take a multi-pronged approach to cutting company debt, including encouraging mergers and acquisitions, bankruptcies, debt-to-equity swaps and debt securitisation, according to guidelines issued by State Council, or the cabinet. Corporate China sits on $18 trillion in debt, equivalent to about 169 per cent of gross domestic product (GDP). International institutions have warned Beijing to stop financing weak firms, especially inefficient state-owned enterprises, which tend to crowd out the private sector.