The Wall Street Journal’s sister company Dow Jones Newswires publishes a dedicated article on Prof Li Wei’s Business Conditions Index, a monthly survey that takes the pulse of some of China’s leading entrepreneurs and executives.
With the unveiling of the “Lianghui” parliamentary sessions, China’s financing situation has again become a hot topic. During the two sessions, Chinese leaders have showed their determination to reduce resistance for Chinese firms, while many have expressed optimism about the financing situation in the near future. Nevertheless, companies in China still face many problems.
A recent article by Dow Jones Newswires focusing on the financing conditions of China comments that the situation is far from ideal. The article quotes the CKGSB BCI, or Business Conditions Index, which registered 55.8 in February, up from January’s level of 51.2. It notes that respondents were relatively optimistic about the next six months, with sub-indices on profit, inventory, corporate investment and labor demand improving, while the financing index rose slightly, but remained below the 50 break-even level, signaling contraction.
The Dow Jones article also mentioned that the CKGSB BCI indices are higher than government and industry indices because the sample firms – those run by current or former CKGSB students – are in a relatively strong competitive position in their respective industries, so the conditions for most companies in China are even more difficult. CKGSB Professor of Economics Li Wei, who leads the monthly survey, was quoted as follows:
“The financing situation for Chinese companies is far from ideal. Companies face both financing difficulties and high costs.”
Launched in June 2011, the CKGSB BCI index is a monthly survey conducted by the CKGSB Case Center and the Center for Economic Research which gauges the business sentiment of executives about the macro-economic environment in China. Here are the key points of this month’s index:
To read the CKGSB BCI report for February in full, please click here.