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Monday, November 5, 2012

''China ''Addicted To Credit''

From The Diplomat via Zerohedge
By James Parker

''Most worrying is a drastic rise in the amount of “accounts receivable” (A/R) on the balance sheets of Chinese companies.  Accounts receivable is an item of money owed to the company (from customers) which has not yet been paid. Many transactions are done on credit, and it is normal for companies to have these items on their accounts.  However, Chinese firms’ accounts receivable are estimated to have risen by 45% year-on-year (YOY) according to reports filed so far, whilst sales have climbed by less than half that rate.''

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