Companies in Asia are facing more overdue payments as the macroeconomic problems facing the region filter through the supply chain. In China, 80.6% of companies experienced overdue payments in 2015, with the the value of outstanding debt rising by 58.1% from 2014.
In its annual corporate payments survey of Asia Pacific, credit insurance firm Coface quizzed 2,793 companies in eight countries: Australia, China, Hong Kong, India, Japan, Singapore, Taiwan and Thailand.
On aggregate, 70% of companies in the region experienced overdue payments last year, no improvement on 2014. What’s more, companies do not expect the situation to improve over the course of 2016. Those sectors hit hardest are construction, industrial machinery, automotive and metals. Companies in these industries are being affected most by the slowdown in China, particularly in its property sector.