Market news
04.12.2019, 07:00

China capex growth hits three-year low

Capital investment by Chinese firms has ground to its slowest pace in three years, as a weakening economy, tight credit and prolonged trade war with the United States dent sales growth and cash reserves.

Companies are also spending more days to turn inventory into sales and eking out smaller profit gains, the analysis showed, in an economy growing at its weakest pace in nearly three decades, with many analysts expecting the slowdown to intensify.

Chinese firms raised capital spending by 1.6% in the three months through September versus the same period a year prior, the weakest growth in three years, showed an analysis of about 2,900 firms with market capitalization above $100 million.

Cash reserves at surveyed firms grew 5.6% on year in the September quarter, the weakest since the first quarter of 2018. Moreover, the average number of days a company holds inventory before sale was 108 in the first nine months of the year, topping an annual average of 100 or less in the last four years.

Revenue grew 6.7%, the weakest in at least three years - the earliest period for which data from a comparable number of firms is available - while net profit rose 7.8% versus nearly 22% two years earlier.

The consumer discretionary and communications services sectors were among the poorest performers, with revenue shrinking 1.4% and growing just 1% respectively.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location