Aside from construction, the car industry is the sector which has one of the worst payment cycles, according to Coface. Photo: Reuters

China’s private companies making a pig’s ear out of paying their bills as economic slowdown bites

  • Record numbers of Chinese firms are defaulting on their bonds, while also taking longer than ever to pay their suppliers, says trade credit insurer Coface
  • A majority of companies expect lower growth this year, up from a third last year, as private sector bears weight of China’s slowdown
Topic |   China economy

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Aside from construction, the car industry is the sector which has one of the worst payment cycles, according to Coface. Photo: Reuters
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The American Economic Association estimates that 80 per cent of privately owned Chinese firms have received funds from informal channels. Photo: AP

Is China about to bring shadow banking back out of the darkness to kick start its slowing economy?

  • Government crack down on debt and risky lending also eliminated legitimate funding channels for smaller private sector businesses
  • Government pledging more support for fund smaller businesses, but private sector remains sceptical
Topic |   China economy

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The American Economic Association estimates that 80 per cent of privately owned Chinese firms have received funds from informal channels. Photo: AP
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