This is maybe the best explanation for the rising Chinese stock market,
(…)Even the stock market bubble is only a temporary device to alleviate financial pressure. It has been suggested that elevated stock prices allow SOEs to do a debt for equity swap at sky-high valuations, which would alleviate some of the debt pressures facing those companies(…)
As crazy as this sounds, I consider this perfectly possible.
If you own any Chinese bank stocks, be worried, very worried…