China says loss-making state firms should exit market

[BEIJING] China's state-owned firms that suffer three consecutive years of losses should exit the market through bankruptcy or other means, the country's state asset supervisor said in a statement on Friday.

"We will close, suspend, combine, divert, peel off or reorganise long-term, loss-making enterprises which are in the overcapacity industry and could not meet the state standards of energy consumption, environment protection, quality and safety," the State-owned Assets Supervision and Administration Commission (SASAC) added in the statement.

The comment follows a urge from China's premier Li Keqiang to clean zombie firms and tackle serious overcapacity in some industries.

REUTERS