An Economic Observer report revealed today the impact of the financial crisis on 54 major listed companies in terms of decreased demand, falls in projected profits, and aborted reorganization plans.
Among the 54 companies surveyed in the report, 17 are facing decreased demand, with the chemical industry most severely hit. Yunnan Salt & Chemical Industry said the prices of raw materials for fertilizer production have plummeted due to the fall in international oil and coal prices.
The nonferrous metals industry has also been badly hit. Jiangsu Shenlong said the price of molybdenum has fallen steeply in line with falling steel prices.
Both Shanghai Airlines and Air China have lost money on aviation oil hedging contracts.
More importantly, companies whose overseas assets were hit badly in the financial turbulence have abandoned reorganization plans.
Plans to raise capital have also been put at risk. Great Wall Electrical Co. Ltd. and Nanjing Medicine have been forced to abandon plans to raise funds.
For more details, please read the full story in Chinese
http://www.eeo.com.cn/finance/securities/2008/12/17/123894.shtml
(China.org.cn by Fan Junmei, December 17, 2008)
