• About
  • News
  • Events
  • Media Kit
  • Advertise
  • Subscribe
  • Contact Us
  • Online Magazine
  • Newsletter
  • Türkçe
No Result
View All Result
Food Turkey
No Result
View All Result
Food Turkey
No Result
View All Result
China Payment Survey 2020: Payment delays will increase further because of COVID-19

China Payment Survey 2020: Payment delays will increase further because of COVID-19

fdturkey by fdturkey
16/06/2020
in Company News, News In General
Reading Time: 2 mins read
A A

Coface’s 2020 China Corporate Payment Survey looks at the payment behaviour of over 1,000 companies in China in late 2019. The data was compiled in the fourth quarter, which means that the figures do not take into account the impact of the COVID-19 pandemic on the Chinese economy. Notwithstanding this caveat, our survey shows a deterioration in payment behaviour in 2019, which ultimately does not bode well for Chinese companies in the context of weaker activity in 2020. Coface expects growth to fall to 1.0%, the lowest level in 30 years, so given the historic correlation between economic activity and payment delays, we anticipate a sharp deterioration in 2020.

Average payment terms remained stable at 86 days in 2019. However, the percentage of respondents offering average credit terms exceeding 120 days increased to 23% in 2019, up from 20% in 2018 and 12% in 2017. In practice, 50% of respondents offered maximum payment terms exceeding 120 days. Payment delays also deteriorated, with the proportion of companies experiencing payment delays that exceed 120 days increasing to 37% in 2019 from 31% in 2018. More ominously, the proportion of respondents experiencing ultra-long payment delays (ULPDs, over 180 days) that exceed 10% of their annual turnover increased to 27% in 2019, up from 21% in 2018. When these constitute a large proportion of total annual turnover, a company’s cash flow may be at risk, which is worrisome in case of exogenous shocks like COVID-19.

Coface expects an increase in bond defaults and insolvencies amongst sectors that experienced a build-up in cash flow risks in 2019. The sectors with the highest proportion of ULPDs accounting for more than 10% of annual turnover are construction (30%), transport (30%), energy (29%) and automotive (28%). ICT recorded the highest increase in payment delays on the back of US-China trade war disruptions, deteriorating by 12 days to reach 102 days. While all sectors are exposed to these risks, sectors that entered the crisis from a position of strength have better chances than those who did not.

In fact, companies may be in a weaker position to withstand the impact of the COVID-19 shock relative to last year, with 40% of respondents admitting that they did not use any form of credit management tool to mitigate cash flow risks in 2019, while only 17% of respondents declared using credit insurance.

 

Tags: #coface#Covid-19#economy#food#kriz#news#paymentdelaysChina
Previous Post

Loryma designs Lory® Bake High Protein, a functional mix for high-protein, low-carb muffins

Next Post

“Our expectations from Turkish Exporters are beyond the normal”

fdturkey

fdturkey

Related Posts

Informa Markets announces landmark move: ProPak Asia 2026 to relocate to IMPACT Muang Thong Thani
Company News

Informa Markets announces landmark move: ProPak Asia 2026 to relocate to IMPACT Muang Thong Thani

by fdturkey
25/06/2025
Valio announces strategic move to consolidate production in Joensuu, enhancing operational efficiency
Company News

Valio announces strategic move to consolidate production in Joensuu, enhancing operational efficiency

by fdturkey
21/06/2025
Korea is the partner country of Anuga 2025
Company News

Korea is the partner country of Anuga 2025

by fdturkey
19/06/2025
SIGEP Asia 2025: Global Talent, Curated Experiences and Strategic Networking
Company News

SIGEP Asia 2025: Global Talent, Curated Experiences and Strategic Networking

by fdturkey
11/06/2025
The New Ink Fits All Beverage Containers
Company News

The New Ink Fits All Beverage Containers

by fdturkey
10/06/2025
Next Post
“Our expectations from Turkish Exporters are beyond the normal”

“Our expectations from Turkish Exporters are beyond the normal”

Natural ice cream using Citrus Fiber

Natural ice cream using Citrus Fiber

Messe Frankfurt and VNU Asia Pacific join forces to launch a new trade show

Messe Frankfurt and VNU Asia Pacific join forces to launch a new trade show

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ONLINE MAGAZINE

The Latest Video News

Newsletter

  • About
  • News
  • Events
  • Media Kit
  • Advertise
  • Subscribe
  • Contact Us
  • Online Magazine
  • Newsletter
Call us: +90 212 454 22 22

© Copyright 2025, All Rights Reserved

No Result
View All Result
  • About
  • News
  • Events
  • Media Kit
  • Advertise
  • Subscribe
  • Contact Us
  • Online Magazine
  • Newsletter

© Copyright 2025, All Rights Reserved