Overcapacity may lead to 3m layoffs

Layoffs in industries plagued by overcapacity are expected to reach 3 million in the next one or two years, according to a Chinese investment bank.

However, this figure will only lead to a "marginal increase" in unemployment, the bank predicts.

The estimate from China International Capital Corp is based on the assumption that the five industries mired in overcapacity will shed 30 percent of their capacity.