Several Chinese Sectors Face Serious Risks Amid Liquidity Crunch

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HFA Staff
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In a recent report Goldman Sachs Group, Inc. (NYSE:GS) noted that tighter liquidity may spell more headwinds for certain listed companies. Although short-term liquidity conditions have eased somewhat from the extreme conditions in 2H June, they expect 2H13 liquidity to tighten vs 1H due to political leaders’ higher tolerance for lower growth and desire to control risks. Against this backdrop, they believe listed sectors/firms facing potential funding shortfall or strain on working capital may be less well positioned than those with stronger balance sheets. Industrials, Materials and Utilities More Vulnerable To Liquidity They analyzed the 1Q13 financials of 2000+ A-share companies and…

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