In a recent analysis, Chinese scholars have pointed out that the problems of high leverage in China are mainly concentrated in enterprises, especially state-owned enterprises. Among state-owned enterprises, the problems are mainly concentrated in zombie enterprises. Zombie gearing average of 72%, while non-zombie business has an average of 51%; there is a difference of 20%. In theory, it is assumed that closing down all zombie businesses will reduce the overall leverage by 4% - 5%, so that the deleveraging process can take a big step forward.