Debts piling up at China's industrial, coal firms

    Updated: 2012-09-13 06:37

    By Reuters(HK Edition)

      Print Mail Large Medium  Small 分享按鈕 0

    Debts piling up at China's industrial, coal firms

    A 20 percent increase in the amount of money clients owe to companies in China's coal, steel and heavy machinery sectors is pointing to an industry-wide shakeout that threatens to put some smaller firms out of business.

    Accounts receivable have risen sharply among China's publicly traded industrial companies as growth slows in the world's second largest economy, reducing manufacturing and the demand for a range of commodities.

    Reuters examined balance sheets from 284 non-financial companies that are members of either the CSI300 index of the biggest Shanghai and Shenzhen listings or Hong Kong's Hang Seng Index. Accounts receivable at those firms rose by about 20 percent between December 2011 and June 2012.

    The jump in unpaid bills has alarmed the government.

    The Development Research Centre of the State Council, a research unit of China's cabinet, said in a report in March accounts receivables at Chinese industrial companies hit 7.2 trillion yuan ($1.13 trillion), and that the situation in the steel, coal and machinery sectors was especially "grave", according to state media.

    Much of the money owed to large, state-owned companies in these sectors poses little threat because it is guaranteed by banks, but the rise in such accounts in smaller firms presents a huge and growing risk, analysts say.

    "There are no signs of (an) economic recovery. The government is reluctant to implement any stimulus measures. The situation will get worse by the end of this year" and further deteriorate by the middle of next year, said Helen Lau, senior analyst at UOB Kay Hian (Hong Kong) Research who covers China's coal and steel sectors.

    "A lot of smaller firms will default because they are financially weak and may not be able to get financing from banks. This is a natural market-driven market consolidation."

    Worried by the March report, the cabinet has ordered various ministries to look into the issue. The ministries have yet to publish their findings.

    According to Reuters data, the top 300 Shanghai- and Shenzhen-listed companies were owed a total $244.8 billion from their clients at the end of June, up from $204 billion six months earlier and about 18 percent higher than in June 2011.

    Coal and construction firms recorded some of the largest increases in accounts receivable this year. Many of these firms said in their half-year earnings reports that the rise in accounts receivable was due to a slowdown in payment collection from clients, including local governments.

    Joseph Ho, an analyst at Daiwa Capital Markets based in Hong Kong said the heavy machinery sector's outlook was negative due to rising accounts receivable and inventories, and weak market demand.

    "It is a sector in which only the strongest can survive," he added.

    (HK Edition 09/13/2012 page2)

    中文字幕一区二区三区日韩精品 | 蜜臀AV无码国产精品色午夜麻豆| 中文亚洲欧美日韩无线码| 亚洲AV无码一区二区三区性色| 中文字幕久久精品无码| 成人av片无码免费天天看| 亚洲va中文字幕无码久久| 7国产欧美日韩综合天堂中文久久久久 | 精品无码国产一区二区三区AV| 在线中文字幕精品第5页| 亚洲av中文无码乱人伦在线r▽ | 老司机亚洲精品影院无码 | 中文字幕乱妇无码AV在线| 精品久久久久久无码中文字幕一区| 精品久久久久久无码国产| 无码精品人妻一区二区三区漫画 | 婷婷综合久久中文字幕蜜桃三电影| 国产成A人亚洲精V品无码| 亚洲成A人片在线观看无码不卡| 无码国产精品一区二区免费式直播 | 亚洲Av无码专区国产乱码DVD| 亚洲美日韩Av中文字幕无码久久久妻妇| 亚洲精品无码激情AV| 精品久久久久久无码中文字幕| 日韩国产成人无码av毛片| 亚洲av无码一区二区乱子伦as | 人妻丰满AV无码久久不卡| 亚洲精品无码mv在线观看网站 | 黄A无码片内射无码视频 | 天堂AV无码AV一区二区三区| 国产白丝无码免费视频| 国产成人无码精品一区在线观看 | 无码AV动漫精品一区二区免费| 成人无码免费一区二区三区| 精品国产a∨无码一区二区三区| yy111111少妇无码影院| 成年午夜无码av片在线观看| 无码国内精品久久人妻麻豆按摩 | 亚洲成a人无码av波多野按摩| 亚洲AV无码不卡在线观看下载| 忘忧草在线社区WWW中国中文|