Abstract:Loudi city of Hunan province is an important new energy and raw material industry base in the whole province and the whole country. The leverage level of entity enterprises within its jurisdiction rises rapidly, and the leverage level and the efficiency of leverage increase in various industries are quite different. Deleveraging is faced with a series of structural problems and difficulties. The long-term high saving rate and high debt are the underlying reasons for the continuous rise of leverage ratio of enterprises in Loudi city. The structural contradiction of investment and financing mechanism is the root cause of the differentiation of leverage level of enterprises at all levels in Loudi city. The decline of profitability in the traditional real economy is the direct cause of the prominent risk of corporate leverage. Therefore, policy coordination and cooperation should be strengthened to create a favorable policy environment for the deleveraging ratio of enterprises in the region. Supply-side structural reform should be promoted in a coordinated way, and corporate debt risks should be addressed by improving the quality of economic operations and the efficiency of corporate operations. The financing structure should be improved in accordance with market principles and deleveraging should be promoted in accordance with the rule of law.