Moody's: China's GDP growth will boost companies' earnings
|In its latest review report on China, Moody’s Investors Service noted that “China's economic rebound will buoy demand for goods and services, lifting companies' revenue over the next 12-18 months.”
Key takeaways
“Rising demand for goods and services in China, driven by GDP growth, will boost the earnings of most rated companies this year and next.”
“For sectors such as auto and auto services, food and beverages, and technology hardware, EBITDA growth will outpace debt expansion, improving Chinese companies' leverage.”
“On the other hand, high spending needs will stall deleveraging for construction and engineering companies despite buoyant revenue and EBITDA due to a solid order backlog.”
“Greater competition as a result of antitrust regulations will reduce the EBITDA margin of internet and technology companies.”
Related reads
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.