Categories: Business

Royston Carr Asset Management Comments on Pay Delays for Chinese Companies

Royston Carr Asset Management Comments on Pay Delays for Chinese Companies

Royston Carr Asset Management Companies in automobile and construction sectors struggle to get paid.

Online PR News � 27-March-2019 – Chinese companies are having to resort to longer payment terms as they struggle to hold on to business. Royston Carr Asset Management analysts say longer payment terms are being implemented especially in the construction, energy and transport sectors.

According to a recent survey, more than 60 percent of companies in China are experiencing longer than usual delays in having accounts settled over the last year.

Growth in Chinas economy slowed to 6.6 percent last year, the slowest pace seen in almost three decades as the Bank of China battled to control high levels of debt and the trade war with the United States placed extreme pressure on consumer spending and Chinese companies.

Corporate cash flows are being impacted by stricter credit conditions and high bond defaults making it more difficult for companies to pay their outstanding accounts.
In 2018 the number of companies reporting payment delays of 180 days or more increased from 47 percent in 2017 to 55 percent.

Royston Carr Asset Management analysts say that with the complex chain of supply in sectors like the automobile industry, many transactions take place along the supply chain.

Chinese authorities have reassured private companies that they will take steps to address the worsening payment conditions but did not offer a concrete plan of action to do so.

According to the survey, up to 80 percent of very long payment delays are never settled causing concern for private companies that are already feeling the weight of the slowing Chinese economy.

Company Contact Information
Sophie Shen
227 673 241
 
Read Full Article
Alex

Recent Posts

Singapore – A Trusted Global Supply Chain Management Hub

SINGAPORE - Media OutReach Newswire - 8 November 2024 - Singapore is strengthening its position…

14 mins ago

OPPO Celebrates Global Photography Talent at Paris Photo Fair under the theme of “Dear Life”

PARIS, FRANCE - Media OutReach Newswire – 8 November 2024 - This year, OPPO once…

43 mins ago

ICONSIAM Showcases Thai Culture with “ICONSIAM THAICONIC LOY KRATHONG” Festival, Strengthening Thailand’s Global Standing

This year’s Loy Krathong event at ICONSIAM celebrates Thai cultural heritage, promotes sustainability, and shines…

44 mins ago

KBTG Vietnam and Techsauce Propel Techsauce Global Summit 2024 in Vietnam – Accelerating ASEAN’s Digital Economy

HO CHI MINH CITY, VIETNAM – Media OutReach Newswire – 8 November 2024 - KBTG…

2 hours ago

Prince Holding Group’s Chairman Chen Zhi Named Visionary Philanthropist of the Year for Impactful Initiatives in Cambodia

PHNOM PENH, CAMBODIA - Media OutReach Newswire - 8 November 2024 - Neak Oknha Chen…

3 hours ago

Telosin X Debuts in Singapore at The Mineral Boutique: Revolutionizing At-Home Skincare

SINGAPORE - Media OutReach Newswire - 8 November 2024 – Singapore's beauty enthusiasts have a…

3 hours ago