Jialat! Chinese companies are reporting delays in getting paid by business partners !
#1
Chinese companies are reporting delays in getting paid by business partners !

Companies in China are increasingly having difficulty getting paid.

The country's slowing economic growth, tighter credit conditions and rising bond defaults are putting pressure on corporate cash flows, according to a survey by French trade insurer Coface.

Growth in the world's second-largest economy slowed to 6.6 percent in 2018, the worst showing since 1990. Efforts by authorities to rein in high debt levels by constricting credit were a factor behind record corporate bond defaults, while the trade war with the United States also weighed on businesses and consumer spending.

"This context has led to pressure for Chinese companies, who have resorted to using longer payment terms to sustain business," Carlos Casanova, Coface's Hong Kong-based economist for Asia Pacific, said in his firm's China Payment Survey 2019, released Thursday.

The longest payment terms were seen in the automotive and broader transportation sector as well as the construction and energy sectors, according to Casanova's report.

Coface queried 1,500 Chinese companies and found that 62 percent reported delays in getting paid last year.

Many companies have complex supply relationships. Automobile manufacturers, for example, need to procure steel, plastic and electronic components and numerous transactions occur along the supply chain. That dynamic is also at play in other industries, such as construction.

A total of 40 percent of respondents said payment delays increased last year, higher than the 29 percent recorded in 2017.

Coface said 90 percent of the surveyed companies are privately owned while 10 percent are state owned.

Pressure from the slowing economy and the trade war eventually caused authorities to pause last year in their efforts to pare down total debt, estimated at more than three times the size of China's GDP, in order to try and support overall growth.


'Moral hazard'
Chinese President Xi Jinping last year publicly responded to private companies' concerns about worsening conditions, assuring them authorities stood ready to help.

Coface also found that the percentage of companies reporting "ultra-long payment delays" of more than 180 days rose to 55 percent, up from 47 percent the previous year.

"According to Coface's experience, 80 percent of ultra-long payment delays are never paid," Casanova said. "When these constitute more than 2 percent of annual turnover, a company's cash flow may be at risk."

Coface also found that 59 percent of respondents saw it as unlikely that economic growth will get better this year, the first time since the survey began in 2003 that a majority of participants voiced such a view.

Corporate bond defaults in China surged in 2018, quadrupling in U.S. dollar terms to $16 billion, Coface said, adding that bankruptcies also rose.

But defaults have leveled off so far this year, said Bryan Collins, head of Asian fixed income and portfolio manager at Fidelity International, citing easing credit conditions.

Collins stressed, however, that the spike in defaults last year was a healthy development for China's economy overall — as it demonstrated an increasing maturity.

"What it shows you is that the concept of defaults is now not such a shock. It's not new," he told reporters on Wednesday in Hong Kong.

"And I would interpret this as being that the perception of moral hazard has started to break," he said. "That is the number one financial market reform for China and that's associated to the efficient pricing and allocation of capital."

For 支那 Alimama and all her 40 clones(talkingsmart, buick, PJM, , amada, alanis, ,XXX, genie, hillview, niubee, SotongOngTee, yummysukiyaki etc) :
屌你 polanski aka amata 的老母 !
To all smelly ChewHooKias:
Get the F out of S'pore !
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#2
Thanks for caring China thumbs up thumbs up
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#3
China no money ??? Run lah dumbfarks !!! Run now !! Surprised
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#4
15-3-2019 8:24 PM
niubee said:
Thanks for caring China thumbs up thumbs up


[Image: images?q=tbn:ANd9GcTnrWxZ76vLmgilSLQqcf3...Fyx8Da95bo]

You better quickly go back to help 支那 kock. Fatty Xi needs you ! Thinking
For 支那 Alimama and all her 40 clones(talkingsmart, buick, PJM, , amada, alanis, ,XXX, genie, hillview, niubee, SotongOngTee, yummysukiyaki etc) :
屌你 polanski aka amata 的老母 !
To all smelly ChewHooKias:
Get the F out of S'pore !
Quote
#5
15-3-2019 8:24 PM
niubee said:
Thanks for caring China thumbs up thumbs up

how he know what happen in china. he got long distance eye/千里眼?

[Image: 3iyxpmO.jpg]
Citizen Power Game for Citizens to work together to Build a New Social System.

https://www.tapatalk.com/groups/singapor...apore-f24/
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#6
15-3-2019 9:30 PM
Omnipresent88 said:
how he know what happen in china. he got long distance eye/千里眼?

[Image: 3iyxpmO.jpg]

Laughing Laughing
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#7
[Image: legendary-big-trouble-in-little-china.jpg]

Laughing Laughing Laughing
For 支那 Alimama and all her 40 clones(talkingsmart, buick, PJM, , amada, alanis, ,XXX, genie, hillview, niubee, SotongOngTee, yummysukiyaki etc) :
屌你 polanski aka amata 的老母 !
To all smelly ChewHooKias:
Get the F out of S'pore !
Quote
#8
15-3-2019 9:16 AM
century said:
北上广深莞出手 楼市突然减税 透露什么信号?
14/3/19


suddenly cut all the transaction tax for property, what happen? real panic liao.....
all these to cities in china, property price & sales down....real desperate, so fast cut a few type of taxes to attract buyers....developers already down price still not enough....
how about small town, ghost town....over build, over price....just wait for melt down....
if china property crash, the biggest fake & ponzi pillar of china economy, that will definitely shake the core of china....
how prc will react? revolution if tons lost their job, then lost their wealth overnight?...... thumbs up

大陆失业率创20年新高 或危及中共政权



5.3% of unemployment rate in china...highest in 20 yrs...will get much much worse than this if continues....
If 1 bil working population means 53 mil of unemployment....almost 1500% of spore citizens population, cant imagine...
what happen if china property crash? much worse than 5.3% unemployment as many will bankrupt & lost their wealth....
if world trade keep shrinking, most factories move out of china, investment pull out, china isolated from western world...
prc go into revolution, civil war, riot...will be much worse than 1989, just beijing students only...now is whole nation...
no way to print their way out....ponzi collapse, debt burst....let see..... thumbs up
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#9
15-3-2019 11:08 AM
century said:
China’s Economy: Not So Big After All. New research suggests that China’s economy is only half the size of America’s—and growing much more slowly than officially reported.
March 14, 2019


The four economists’ “forensic examination” of China’s GDP figures relied on hard-to-fake data like tax receipts, nighttime light intensity observed from satellites, electricity generation, railway cargo and merchandise exports to estimate China’s true growth rate since the 2008 Global Financial Crisis. Their estimates are both much more volatile and nearly always lower than the figures reported by China’s National Bureau of Statistics.


seem like china fake data & figure are well known globally.....
all the self claimed number....export to HK, import from HK again to record numbers....
china debt to GDP is very huge....250-300% or even higher...so the higher the GDP, the bigger is the debt....different number to use at different time....


China has more than four times the population of the United States, so in per capita terms China is still way behind at $9,800 compared to nearly $63,000 for the United States.


china per capita higher than Mexico?..... Laughing thumbs up

China Scrambles To Defuse $6 Trillion "Hidden Debt Bomb" With "Titanic Credit Risk"
Tue, 03/12/2019


US$6 trillion, this is only part of local govt borrowing....roll & ponzi....end is near....
china debt to GDP some say is 250% in 2017, some say 300%....some even higher....now 2019? with recent print & print....if china GDP is higher then debt is even higher....what is china GDP? govt self-claim or they want a lower GDP now?....
still have shadow banking, this one is huge & unknown...A loan to B, B to C & so on.....
bond default like hyflux....last yr in china in hundreds or thousands.....this yr will be much worse....
all the debt, bad debt, write off....bomb is ticking faster & nearer this yr..... thumbs up Laughing
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