Survey: 80% of China-based Companies Experienced Overdue Payments in 2013
Eight out of 10 China-based companies experienced overdue payments in 2013, according to a new survey by Coface on corporate credit risk management.
Carried out in the fourth quarter of 2013, the survey polled 956 companies from different sectors. The survey aims to provide a better understanding of China-based companies’ payment experience and their credit management practice.
Coface found that the chemical, industrial machinery and household electric and electronic appliances sectors are at higher risk than others. Since credit facilities will remain tight in 2014, a deterioration in corporate payments could lead to a significant ripple effect in China’s shadow banking market.
Other key points from survey: