An Attempt to Profile the Finances of China’s Enterprise Sector
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
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. 2001/182
Subject:
Bank credit Economic sectors Financial institutions Financial sector Money Nonperforming loans State equity participation Stocks Taxes
Frequency:
Irregular
English
Publication Date:
November 1, 2001
ISBN/ISSN:
9781451859263/1018-5941
Stock No:
WPIEA1822001
Pages:
24
Please address any questions about this title to publications@imf.org