Understanding China, One Blog at a Time

An American in China

China’s Business Crash, Profits Down By 80%

Posted by w_thames_the_d on July 18, 2012

China has companies which have suckled the pap of ignorant foreign investors and favorable governmental policies for the past two decades. As such, the chicom firms do not know how to truly compete. Consequently, these firms, when faced with a crisis, shit their collective britches, abscond money and fold.
Major chinese companies will see profits decline by as much as 80%, which means your China stock portfolio is about as worthless as laws in China. If you are hurt by this drop in profits and stock prices, then good for you. You were an idiot to buy anything made in the big stinky anyway.

BEIJING (AP) — Some of China’s biggest companies, from tech giants to airlines and retailers, are warning of unexpectedly sharp drops in profit of up to 80 percent, adding to pressure on Beijing to reverse a painful economic slump.

On Wednesday, Air China Ltd., one of three main government-owned airlines, warned first-half profit will fall by at least half from a year earlier. State-owned ZTE Corp., one of the world’s biggest producers of telecommunications equipment, is projecting a decline of up to 80 percent.

Read more: http://www.businessinsider.com/chinas-biggest-companies-warn-of-profit-plunges-up-to-80-2012-7#ixzz211Vlney2

5 Responses to “China’s Business Crash, Profits Down By 80%”

  1. Brewskie said

    Oh yeah, you’re talking the artery to China’s crony economy.

    Sheeshh… how big of an impact – errr… stranglehold – do SOEs have on the Chinese?

    Sure, 10 years ago China may have opened some doors to her economy, but the past few years the SOEs’ word on the economy have rung true as the real King’s truth on her corruption. Just how big are the SOEs’ impact on China’s economy, let me show the facts:

    – Among China’s 500 largest companies, SOEs make up 63.2% of companies, yet rake in 82.82% of revenue, 81.88% of profits, and roughly 90% of assets.

    – Huawei is China’s largest private company worth an estimated 185 billion RMB; China’s largest company, state-owned Sinopec, is worth 1.969 trillion RMB.

    – Huawei is ranked 39th among top-500 companies; along with Sinopec, state-owned PetroChina and National Grid accumulate a combined worth of roughly 5.2 trillion RMB.

    – A mere five state-owned banks commands 26.13% of profits garnered by “top-500” companies.

    – Some large companies still receive appointed executives from the CCP because they’re really ex-SOEs.

    • wtdevflnt said

      Thanks BrewMan, will reblog!
      The King has been active, you will have to hear about his bid to save a life in China….

      • vanoc1 said

        She better get back to me on this. a delicate life hangs in the bad juju if indeed I am a match and no action was taken.

      • wtdevflnt said

        I have no idea why this woman is not taking advantage of this King. I am astounded.

      • Brewskie said

        Saving a life is powerful. I once save a life indirectly: it depended on my decision to take the shorter but more boring route to work one morning, over the slightly longer but more scenic route. Couple more minutes and the pills woulda iced the lady permanently, and her son woulda went to his asshole father.

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