A Financial Times Service
China Confidential - Premium Investment Insight

Update Alerts

China steel mills profits slump, loan default risks rise

02 July 2012

Profits earned by profit-making steel mills in China slumped 94.26% YoY to Rmb2.53bn in the period from January to May this year, while loss-making steel companies posted a 27 fold jump YoY in losses to Rmb11.75bn in the same period. We think the data reinforces a sense of caution over steel companies which experienced narrowing margins, rising accounts receivable and rising concern over steel’s use as a form of financial collateral during June, according to our grassroots research (CC June 28 Big Call).

RENMINBI COMPASS

Renminbi Compass Small Logo

Renminbi Compass, a new research service launched by the FT, aims to act as a navigational guide through the expanding universe of renminbi asset classes. With the Chinese currency gaining ever-wider acceptance around the world and Beijing taking steps to open its capital account, we are broadening our research coverage to include not only equity funds but also all other important renminbi asset classes, such as chengtou bonds, dim sum bonds, real estate, trust products, underground banking, art, antiques and several others.