Corporate Sectors Face Risks Despite Economic Advancement in Q2

The economy of China has progressed in the second quarter as the corporate profits rose and employed more workers in the recent surveyed but the country still yet to face difficulties. Nevertheless, corporates were able to endure a tighter financing condition amid signs of problems regards to negative cash flow and inventory levels. Commodities sector is strengthening in spite of weak price in the second quarter

This is in line with the latest data and rhetorics of policy makers who tried to control financial risks to prevent the collapse of the economy which would be discussed on the significant political meeting.

The government intervenes with its campaign to control debt risks and steady the financial market since the cash supply was sluggish in the past two decades in May. Notwithstanding, the bank lending remained strong. Companies are starting to sense tighter credit while they presume the deleveraging to be transitory.