MNI China Press Digest, Dec 5: Debt, De-leveraging, SMEs

     BEIJING (MNI) - Following are highlights from the Chinese press for

Wednesday:

     Chinese authorities are moving to accelerate the restructuring of zombie

companies' debts, requiring local governments to oversee bankruptcy proceedings,

restructurings and mergers and reorganisations when feasible, the Beijing News

reported on Wednesday, citing a document from the National Development and

Reform Commission and 10 other departments. Local governments are also banned

from providing subsidies to sustain zombie enterprises, the paper said. (Link to

the story: https://bit.ly/2RAg1w2)

     Companies which are reluctant to be merged, reorganized or eliminated from

the market during the de-leveraging campaign have slowed down the entire

economic restructuring process, said China Securities Journal on Tuesday night

citing Fan Gang, director of China's National Economic Research Institute. At

present, the key is how financial institutions, especially equity funds can help

enterprises merge and reorganize, the Journal said, citing Fan. The deleveraging

campaign, which had the effect of slowing the economy, is now operating less

intensively, the newspaper said citing Fan. (Link to the story:

https://bit.ly/2EgYLcc)

     The municipal government of Shenzhen is launching a CNY400 billion plan to

support the private economy, Southern Metropolis Daily report on Wednesday. The

government pledged to cut the burden of cost and taxes on local enterprises by

at least CNY100 billion, to promote at least CNY100 billion in additional

lending to small and private companies and CNY100 billion in fresh corporate

bond issuance, and to establish a CNY100 billion stable development fund for

promising private firms in line with the national economic restructuring

strategy, the Daily said.(Link to the story: https://bit.ly/2Svt0z9)

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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