Plan to resolve woes of ‘zombie companies’
Print Edition
CHINA is expected to release a detailed plan on “zombie companies” soon to reduce capacity in oversupplied industries, the China Securities News said yesterday.
“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 using 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, the report said.
The plan will begin trials in around 20 cities nationwide this year, said the paper.
China will increase financial support to its industries as they are being encouraged to transform themselves amid the country’s industrial upgrading, according to a guideline jointly released by eight economic regulators, including the People’s Bank of China.
Development of emerging sectors and upgrade to traditional ones will receive more support, and financial institutions will be encouraged to make long-term loans to high-tech firms, technical equipment manufacturing and some basic industries, said the guideline.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
