Managing credit risks remains a challenge for most companies doing business in China. Since 2003 Coface has been conducting a series or surveys concerning payment trends and their impact on credit risk management in China.
We are delighted to welcome Jean-Michel Lafage, Head of China Operation of Coface to share with us the findings of the latest Coface Corporate Credit Risk Management Survey. From October to December 2006 various types of companies from WFOEs to SOEs in several industry sectors were interviewed and the results evaluated.
Mr. Lafage’s presentation will cover recent payment trends and their impact on companies’ risk mitigation strategy as well as a risk analysis for specific industry sectors like chemicals, pharmaceuticals and IT.
Agenda
8.00 - 8.30 Registration and Breakfast
8.30 - 9.15 Presentation by Mr Lafage
9.15 -10.00 Q&A session
Registration
To register for this event, please email this form to Mr. Joao Gago at jgago@euccc.com.cn by Tuesday, April 10th, 12pm.
Confirmations and cancellations by phone are not accepted. Confirmations to email registrations are only sent when requested. Please note that we require 48 hours notice for cancellations.
No-shows who fail to cancel before this time will be invoiced for the event.
Registrations done after the deadline will be accepted only if space permits and are charged an additional 50 RMB walk-in fee.
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Event review
Credit Risk Management in China: results from Coface study
Managing credit risks remains a challenge for most companies doing business in China. Since 2003 Coface has been conducting a series of surveys concerning payment trends and their impact on credit risk management in China.
On 12th April 2007, the European Chamber was delighted to welcome Mr. Jean-Michel Lafage, Head of China Operation of Coface to share with us the findings of the latest Coface Corporate Credit Risk Management Survey. From October to December 2006 various types of companies from WFOEs to SOEs in several industry sectors were interviewed and the results evaluated.
Mr. Lafage’s presentation covered recent payment trends with less use being made of bank guarantees as payment instruments and wider usage of instruments of payments linking directly the suppliers to the buyers’ risks.
Some more extracts from the presentation:
- More than 50% of the companies interviewed in Coface’s survey use “open account” as their unique payment of condition and competition is still the main driving force behind the extended use of open accounts.
- Interestingly, there is now an increased concern on corporate governance and management skills of local companies. False invoices and account receivables fraud shall increase in the years to come.
- Financial difficulties still remain the major reasons for non payments and fierce competition is increasingly putting pressure on margins.
- Amicable negotiations remain the preferred and most effective way of collecting money in China.
- More and more companies are aware of the importance of credit management and are setting up their own in-house expertise.
Mr. Lafage went on to provide an analysis for several sectors. The chemical, pharmaceutical and electronics sectors look set for continued strong performances in the emerging Asia countries (including China). For more detailed analysis, please see the attached presentation from Coface.