Reality Check: Corporate Payment Trend and Sectorial Risk in China

The overall payment experience in China has deteriorated in 2013 comparing to 2012. Key messages from the China Payment Survey are:

- Average credit terms extended in China has become longer comparing to 2012

- Maximum credit terms has generally been lengthened in 2013 comparing to 2012

- Overdue situation has also become more common in 2013 comparing to 2012, with a rising concern of management

- A higher percentage of respondents told us that the average overdue-period has been lengthened

- 45% of the respondents told us that they have seen an increase in overdue amount in 2013, comparing to the 56% in 2012