News & Articles China's economic slowdown affects regional business: S&P
China's economic slowdown affects regional business: S&P
9 Sep 2015
SINGAPORE, Sept 9 (Bernama) -- China's economic slowdown is influencing key business conditions in Asia-Pacific, said Standard & Poor's Ratings Services.
In a report on Asia-Pacific credit outlook for the fourth quarter 2015, the rating agency said China's economic slowdown influenced five key business conditions -- commodity prices, currencies, capital flows, business and consumer confidence and future capital expenditure.
Its Credit Analyst, Terry Chan, said the slowdown in the economic powerhouse hit business confidence and commodity prices, affecting Asia-Pacific miners and oil companies.
"The drop in investor confidence has prompted a sell-off in Asia-Pacific's currencies, exposing corporates to currency risk and potential capital flights," he said.
The report said Asia-Pacific's metals and mining sectors had felt the largest shock from China's slowdown.
"This is not surprising given the fact that China consumed about 40 to 50 per cent of total global raw material production," it said.
It said the region's car, chemicals, gaming, metals and mining and technology bore the brunt of the impact.
The sectors experiencing an intermediate impact included building materials, capital goods, consumer products, financial institutions, oil and gas, real estate development, retail, and transport–cyclical, it said.
The report said the insurance, public finance, real estate investment trusts, structured finance, telecommunications, transport–infrastructure and utilities felt the least impact.
In a report on Asia-Pacific credit outlook for the fourth quarter 2015, the rating agency said China's economic slowdown influenced five key business conditions -- commodity prices, currencies, capital flows, business and consumer confidence and future capital expenditure.
Its Credit Analyst, Terry Chan, said the slowdown in the economic powerhouse hit business confidence and commodity prices, affecting Asia-Pacific miners and oil companies.
"The drop in investor confidence has prompted a sell-off in Asia-Pacific's currencies, exposing corporates to currency risk and potential capital flights," he said.
The report said Asia-Pacific's metals and mining sectors had felt the largest shock from China's slowdown.
"This is not surprising given the fact that China consumed about 40 to 50 per cent of total global raw material production," it said.
It said the region's car, chemicals, gaming, metals and mining and technology bore the brunt of the impact.
The sectors experiencing an intermediate impact included building materials, capital goods, consumer products, financial institutions, oil and gas, real estate development, retail, and transport–cyclical, it said.
The report said the insurance, public finance, real estate investment trusts, structured finance, telecommunications, transport–infrastructure and utilities felt the least impact.
Source: Mysinchew