China Confronts Danger of Large Debts With Broad Restructuring

(Beijing) — Confronting one of the world's biggest debt problems, China is racing to restructure trillions of yuan in bad loans and kill off "zombie enterprises" that threaten the economy. Policymakers are considering an overhaul and modernization of the nation's financial markets.

Central and local governments are working to resolve the debt crisis while also ensuring economic growth and financial stability. Some analysts said they expect the central government to offer fiscal support or tax preferences to assist local governments in deleveraging and to offset impacts on the economy.