ANNOUNCEMENT 04 May 2016

On the 24th May 2016, Hebei provincial government released an overview of its regional-level plan, following the State Council opinion released in February of the same year (see related measure).

 

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Hebei Provincial Government, May 4th 2016. (河北省人民政府 关于印发河北省煤炭行业化解过剩产能 实现脱困发展实施方案的通知)
http://info.hebei.gov.cn/eportal/ui?pageId=1962757&articleKey=6592444&columnId=329982

China Securities Journal, 3rd March 2017. (河北2017年关闭13处煤矿 化解过剩产能941万吨)
http://www.cs.com.cn/zzqh/spqh/201703/t20170303_5194971.html

Inception date: 05 May 2016 | Removal date: open ended

State loan

The Hebei provincial government announcement included several channels of financial assistance for coal mining firms looking to downsize or exit the market entirely. Such channels include:

  • 'Special funds' to be awarded to state-owned enterprises who tackle excess production;
  • Rewards to staff and staff resettlement programmes to soften the blow for workers who are displaced due to reduced capacity;
  • State-sponsored 'debt restructuring' and the dissolution of 'non-performing assets'

  

In 2017, Hebei aims to close 13 coal mines in its attempts at dealing with excess production, to reduce output by 9.41 million tonnes (see China Securities Journal article in 'source').

AFFECTED SECTORS