Study: Solving 'zombie' firm issues can boost GDP

Resolving the problem of "zombie" firms can generate significant GDP gains of 0.7 to 1.2 percentage points per year for China over the next 10 to 15 years, IMF research said.

Debts of the country's "zombie" companies accounted for 5 to 9 percent of its total corporate debt by 2016, according to a new International Monetary Fund working paper.

Debt of companies in overcapacity sectors, such as coal, steel, cement, plated glass, aluminum and solar power, represents a share of 16 percent, the paper reported.