China FlagAccording to the latest Coface survey on ‘Corporate Payment Trend And Sectorial Risk In China’ the overall payment experience in China has deteriorated in 2013 comparing to 2012.  Key messages from the China Payment Survey are:

Average credit terms extended in China has become longer comparing to 2012.  Maximum credit terms has generally been lengthened in 2013 comparing to 2012.  Overdue situation has also become more common in 2013 comparing to 2012, with a rising concern of management.  A higher percentage of respondents told us that the average overdue-period has been lengthened 45% of the respondents told us that they have seen an increase in overdue amount in 2013, comparing to the 56% in 2012.

Rising cost of fund will be a major concern for businesses in 2014, and highly-leveraged companies shall bear the brunt if this materializes. Certain electronics sector, particularly computer machine and computer parts manufacturing are examples of industries at risk.

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Source: Coface