Major measures to cut zombie firms

Notice calls for first lists of companies in 3 months, process to finish in 2020

China is ramping up efforts to deal with zombie companies through bankruptcy or restructuring, as it seeks to cut overcapacity and guard against risks, according to the nation's top economic regulator.

Several government departments jointly issued a notice on Tuesday, urging local governments and State-owned asset management departments to define the first lists of zombie companies in three months. The disposal of zombie companies is set to be completed by 2020.