1. Debt-to-equity swap refers to the financial asset management company converting the original bad credit assets of commercial banks, that is, the debts of state-owned enterprises, into the equity of enterprises.
2. From the original relationship between creditor's rights and debts to the relationship between financial asset management companies and enterprises, from the original debt service to dividend by shares.
3. Legal basis: Article 125 of the Company Law The capital of a joint stock limited company is divided into shares, and the amount of each share is equal.
4. The shares of the company take the form of shares. A stock is a certificate issued by a company to prove the shares held by shareholders. Article 137 The shares held by shareholders can be transferred according to law.