9th Greater China Capital Confidence Barometer
Access to capital – leverage under the spotlight
Over the last six months, Chinese executives report a small decline in their access to credit giving further pause to dealmaking.
Q: Please indicate your confidence in credit availability
Please indicate your confidence in credit availability
Credit availability under scrutiny
Chinese companies’ confidence in credit availability globally remains high at 59% with sentiment little changed over the last six months.
Locally Chinese investors are less confident about access to credit, 49%, a drop from 55% six months ago. This is a further indication that they have become more risk averse amid concerned around economic slowdown.
Debt levels in focus
Bearish sentiment about local conditions and access to capital continues to affect attitudes to deal financing. Respondents remain split between cash and debt to roughly the same extent as they were six months ago, but are much more likely to use cash than they were a year earlier.
More companies looking to refinance
Although the majority of Chinese companies still say they have no intention of refinancing debt obligations over the next 12 months, the number saying they have plans to do so have nearly doubled since April and has quadrupled from 10% a year ago to 40% today.