Mainland'S Macroeconomic Regulation And Control &Nbsp; Private Enterprises Are Delinquent Accounts.

According to Hongkong media reports, because of the tightening of money in the mainland last year, private enterprises have been delinquent.

Rongsheng accounts receivable increased by 10 times.

According to Hongkong Ming Pao newspaper,

A share accounts receivable increased by 33% annually

Last year, the largest increase in accounts receivable was Rongsheng heavy industry (1101) and Tibet 5100 water resources (1115), which increased by 10 times and 4 times respectively, much higher than its revenue and earnings growth, of which 5100 of Tibet's water resources receivable amounted to 356 million yuan (RMB).

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Other private enterprises, including sporting goods and paper stocks, account receivable increased by more than 4.

According to statistics, 534 enterprises that had disclosed annual reports on A shares in mainland China accounted for 513 billion 602 million yuan last year, 2.6 times larger than in 2010, of which more than 300 billion yuan came from China Ping An (2318) and Shenzhen Development Bank, mainly due to the impact of mergers and acquisitions of these two companies.

If the two companies were excluded, the total receivables of the 532 mainland enterprises amounted to 172 billion 302 million yuan, increasing by 33% annually.

M2 grew by nearly 10 years in recent years

Tighten up the money,

As for the accounts receivable of private enterprises, Wen Tianna, managing director of China Merchants Securities, believes that apart from the fact that the mainland has tightened the money supply and has made it difficult for customers to find the number, it may also be that some enterprises have seen a slowdown in sales and increased the number of customers to the growth of demand.

He pointed out that domestic demand and exports remained weak in the first half of this year. Even if the money was relaxed, the accounts receivable would only improve at a slower pace.

The company's deputy managing partner, Mr luwachi, said that the auditors are generally concerned about the customer's accounts receivable, but usually do not rely solely on the increase in accounts receivable, and decide whether or not customers want to make provision or write off accounts for this purpose.

He explained that auditors would first check whether the accounts receivable had passed the customary period of the listed company and its customers. If the account has not expired, the representative account is still healthy.

On the contrary, if the accounts receivable have expired, the auditor will know whether the listed companies have entered into a new agreement with their clients on the repayment plan, such as whether they require their clients to provide collateral or penalty interest.

In addition, auditors may also need to provide evidence from listed companies to show their customers' ability to repay, such as disclosing the identity of customers who are in arrears.

Lu Huaji said that last year, the mainland tightened monetary policy, especially in the second half of the year, when the risk of European debt worsened. It was difficult for the mainland's private enterprises to raise funds through bank financing, only to drag out a number of periods to form a domino effect. So the total receivables of private enterprises increased significantly last year.

Some private enterprises unwilling to bear high risk will choose to reduce their business scale, resulting in a decline in revenues or profits, but at least maintain the overall financial data.