A survey of corporate credit risks management across the Greater China region, China, Hong Kong and Taiwan, was conducted in the fourth quarter of 2011 by Coface, the leading international credit insurance and credit management services group.
The survey revealed that Hong Kong enterprises are exposed to higher credit risks as evidenced by highest overdue in their sales turnover and longest average overdue days as compared to China and Taiwan enterprises. Hong Kong enterprises also expressed that slow recovery of industrialized countries and rapid appreciation of RMB are their top concerns of running their businesses in 2012.
Hong Kong companies are less aware of credit management: 15% of the interviewed Hong Kong enterprises do not have credit management procedure as compared to 3% in Taiwan and 12% in China. There are 68% of interviewed Taiwan enterprises and 56% of interviewed Chinese enterprises that delegate the accountability of credit management control to their finance & accounting department while more than one third of the interviewed enterprises in Hong Kong rely on ‘bosses’ to make credit decisions.
The survey reveals enterprises in Hong Kong are relatively fragile in the Greater China Region while enterprises in China show improvement in payment performance and Taiwan enterprises demonstrate good credit management.
Source: Coface – To read the full story click on the link