An Attempt to Profile the Finances of China's Enterprise Sector

 
Author/Editor: Heytens, Paul J. ; Karacadag, Cem
 
Publication Date: November 01, 2001
 
Electronic Access: Free Full text (PDF file size is 1,066KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper examines the leverage, efficiency, and debt-repayment capacity of the Chinese enterprise sector using aggregate and firm level data. The cash coverage of interest expense, in particular, is used as a bridge between enterprise finances and banks' asset quality in order to develop insights on banking soundness. The interest coverage analysis corroborates the high level of nonperforming loans in the financial system. This underscores the urgency of hardening budget constraints on state-owned enterprises and stemming the flow of new bad loans by accelerating ongoing structural reforms.
 
Series: Working Paper No. 01/182
Subject(s): Economic policy | China | Financial sector | China, People's Republic of

Author's Keyword(s): Chinese economy | Chinese corporate sector | Chinese financial sector
 
English
Publication Date: November 01, 2001
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA1822001 Pages: 24
Price:
US$15.00 (Academic Rate:
US$15.00 )
 
Price Delivery Note: Prepayment required for individual copies. An annual subscription is $375.00 a year. It includes 12 monthly shipments and priority mail delivery. The Stock No. for the subscription is WPEA.
 
Please address any questions about this title to publications@imf.org