Private solution for China’s zombie company problem unlikely

Beijing would likely lean on cash-rich SOEs like China Life Insurance and Citic Group Corp to bail out the largest of the struggling companies, the sources said.

HONG KONG: China’s latest push to revive its bloated state-owned sector is set to pick up pace this year, with bankers and investors expecting possible spin-offs and asset sales to follow a key Communist Party Congress in October.

But the effort is likely to only involve a limited role for private money, even as Beijing has been promoting it as crucial for reforming state-owned enterprises (SOEs), according to sources.