Beijing to unveil detailed plan on ‘zombie companies’

(From Xinhua)

China is expected to release a detailed plan on “zombie companies” soon to reduce capacity in oversupplied industries, The China Securities News reported Tuesday.

zombies“Zombie companies” are economically unviable businesses, usually in industries with severe overcapacity, kept alive only with aid from the government and banks.

The plan, which is being drafted by China’s economic planner and the Ministry of Industry and Information Technology, will support banks in implementing differentiated credit policies to companies in different sectors.

A platform between banks and companies will be established to better identify inquiries and provide effective financing services for companies, according to the report.

The plan will begin trials in around 20 cities nationwide this year, said the paper. Read more

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