zombie SOEs

china industry

China Announces Plan To Close “Zombie SOEs”

UBS | We have been saying that rising downward pressure in the economy and pain in the corporate sector will drive faster SOE restructuring and closin g of excess capacities. Today’s State Council meeting confirms our prediction. For the first time, the government has publically given a timetable and specific guidelines on cleaning up “zombie companies” and reducing losses at the SOE sector.