Chinese Finance Ministry issued more guidelines to reduce overcapacity in the steel and coal sector.

Three different levels of funds totaled 100 billion yuan will be spent on output cut and employees relocation. Meanwhile, the government will keep the current policies on export, land use and gas exploration. Now it is local governments' turn to set target for their own output cuts and report their plans to the central government.

Chinese government pledged to slash its excess output early this year and vowed to spend 100 billion yuan to support the process.