User: LZ: China: Investing in Chinese Stocks—投资大中华地区股市: Unprecedented Financing Pressure Crushing China's SMEs, Trillions in Non-Standard Debt Co

Investing in Chinese Stocks—投资大中华地区股市: Unpreceden...

From the same report, this chart shows the ROE versus ROIC. The red line is SOEs, yellow private firms. The profitability of private firms (many SMEs) has turned down as financing costs (interest rates, fees) soar. What's more amazing is how it was negative for years. Credit creation off the charts allowed money losing businesses to continue year in and year out. 

http://investinginchinesestocks.blogspot.com/2018/07/unprecedented-financing-pressure.html

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