March 6, 2013
Translated by Chen Min

The amount of money owed to Chinese businesses by their clients has exceeded 20 trillion yuan - almost 40 percent of China's GDP in 2012 - according to a report released on the sidelines of an industry forum yesterday.

The report, which was jointly published by the China Association of Trade in Services (中国服务贸易协会) and the Chinese Academy of International Trade and Economic Cooperation (CAITEC), said that the weakening of the global economic recovery combined with a slow down in the pace of growth at home had led to further increases in the amount of accounts receivable that Chinese businesses have on their books.

In addition, an analysis of the books of all listed non-financial companies conducted by CAITEC revealed that Chinese listed companies faced more financial risks last year than at any other time over the past decade.

Wen Zaixing (温再兴), an official with the Ministry of Commerce, told the Economic Information Daily that the ministry plans to gradually trial factoring services in China.

Factoring refers to the process of a business selling its accounts receivable to a third party (called a factor) at a discount.

Links and Sources
Economic Information Daily:商务部发风险报告 称全国企业应收账款规模达20万亿