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.

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

What you'll get:

  • High-quality & in-depth reporting on the most important topics about China's economy and financial markets
  • Daily Brief newsletter to give you a full picture of what's happening in China every weekday
  • Interviews with China experts
  • Conference calls and events 

We are not content with general information that you can get everywhere. We go deeper to get details, data and perspectives you won't read elsewhere! 

 

JOIN FOR FULL ACCESS

Already have an account? Sign In

Top