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Plan due soon on 'zombie companies'

China is expected to release a detailed plan on "zombie companies" soon to reduce capacity in oversupplied industries, China Securities News reported on Tuesday. "Zombie companies" are economically unviable businesses, usually in industries with severe overcapacity, kept alive only with aid from the government and banks. The plan, which is being drafted by China's economic planner and the Ministry of Industry and Information Technology, will support banks in implementing differentiated credit policies to companies in different sectors. The plan will begin trials in around 20 cities nationwide this year, said the paper.