Press "Enter" to skip to content

A Red Flag in China Stock Market: Record High Goodwill

Chinese companies face a reckoning on “goodwill” amassed during the merger wave in the past few years, which leaves many worried about damaging write-downs going forward. Some say, given a slowdown of profit growth this year, there is a bigger chance for significant good impairment, a sword of Damocles over companies in the coming months.

Goodwill on the books of China A-share listed companies reached 1.45 trillion yuan by the end of the third quarter, exceeding 1.4 trillion yuan mark for the first time in history, according to their earnings reports.

That's 15.18 per cent higher than a year earlier and 4.05 per cent higher than the previous quarter.

To continue reading, please subscribe.

FREE TRIAL

We highly value independence. Yuan Talks is solely funded by subscriptions from thousands of intelligent readers like you. 

What you'll get:

  • Systematic, timely and data-driven reporting on China's economy and financial markets with details, data and perspectives you don't read elsewhere!
  • Daily Brief newsletter delivered before market open every weekday wrapping up the most important China-related stories.
  • Weekly Market Wrap-up on A shares, Chinese bonds, the Yuan and commodities!
  • Interviews with China experts. We find you insights you should never miss!
  • Conference calls and events. Nothing is better than talking to newsmakers, experts and reporters directly, right?

 

Already have an account? Sign In

Top