According to Bloomberg, more than 25% of listed companies were loss-making at the end of 2024 β but new data suggests that number may now exceed 50% as conditions deteriorate. Smaller, non-listed businesses are being hit even harder, with many unable to survive without new credit or state support.
Even more worrying is the surge in so-called βzombie companiesβ β firms that canβt earn enough profit to even pay the interest on their debts. Bloomberg estimates that 35% of listed Chinese companies fall into this category, and that figure is likely rising fast.
In this video, I break down how Chinaβs economic slowdown, weak demand, and mounting debt burden have created a corporate landscape filled with loss-making, debt-laden firms β and why this could be the biggest long-term threat to Chinaβs entire economy.
π In this video:
How many Chinese companies are now losing money
What βzombie companiesβ are and why theyβre rising
Why debt and deflation are destroying profitability
How Beijingβs stimulus is keeping dead firms alive
For specific details please check out the CHAPTER list below.
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