China will continue to press ahead with supply-side structural reform in 2017, said a statement issued on Dec. 16 after the Central Economic Work Conference.

China expects substantial progress of the reform in five key areas next year, including cutting overcapacity, destocking, de-leveraging, lowering costs and improving weak links, said the statement.

Efforts should continue in reduction of steel, iron and coal capacity next year, with focus on "zombie enterprises", and mergers and reorganizations will be encouraged.

Businesses with overcapacity that have halted production should be prevented from starting again, and industrial overcapacity reduction should be achieved through market and law-based means.

Destocking of property inventories should be in line with specific local conditions, with priorities to be given to housing inventories in third and fourth-tier cities.