China will support banks to conduct debt-to-equity swap programs. The National Development and Reform Commission said the move aims to cut the country's corporate debt levels.

The NDRC also warned that the program is not a free lunch for troubled firms, and will be carried out in a market-oriented manner.

Zombie companies, or those who could not stay afloat without continued financing, are not going to be on the receiving end.

Before the presser, the NDRC put out a statement, saying China must take action to reduce high corporate debt.