Looks like the trade war was won and China is over a barrel - from Bloomberg:
Hundreds More Chinese Companies Just Warned on Profits
The number of Chinese companies warning on earnings is turning into a flood, with no industry spared from worsening demand.
Some 440 firms disclosed on Wednesday -- the day before a deadline to do so -- that their 2018 financial results deteriorated, according to data compiled by Bloomberg. Of the more than 2,400 mainland-listed firms that have announced preliminary numbers or issued guidance this season, some 373 said they’ll post a loss, the data show. About 86 percent of those were profitable in 2017.
Damage was widespread: Airlines faced soaring fuel costs and a weak yuan, the equity-market slump hurt brokerages, while China’s economic slowdown and a surge in impairment costs slashed earnings for companies as varied as a bus manufacturer, a maker of refrigerators and an ID-card supplier. Conditions continued to get tougher in January for the smaller firms that form the backbone of the nation’s economy, government figures released Thursday showed.
They need US a lot more than we need THEM.
Leave a comment