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Friday, March 03, 2017
Difficult to remove China's zombie enterprises
ANBOUND

At the end of the central financial leadership group meeting, the Central Authorities will deal with the "zombie enterprises" as the priority among the four economic works this year, emphasizing on deepening the de-capacity by handling "zombie enterprises". Anbound Think Tank believes that the clearing the current zombie state-owned enterprises is considerably difficult, other than lack of market-oriented means, there is insufficiency in the implementations of the corporate bankruptcy laws and regulations, as well as the stubbornness of the local governments. At the same time, state-owned enterprises and banking institutions have long been tied-up together; the mass shut down of zombie state-owned enterprises are not what the banking institutions wish to see, therefore it would still be difficult to clear the zombie enterprises.

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