Non-performing “zombie” firms and debt-ridden state-owned enterprises (SOEs) are an increasing drag on China’s overall economy, and fixing them, through deleveraging, reducing government subsidies, as well as operational restructuring could enhance long-term economic growth by 0.7 to 1.2 percentage points per year, according to a new report by the International Monetary Fund. China’s nonfinancial private sector debt has increased significantly over the past decade, reaching 176% of GDP as of the end of March 2017. Corporate debt, standing at about …

Restructure Zombie Firms To Boost China’s Economic Growth Says IMF appeared first on China Money Network.