A-share listed companies report surging inventories

Updated: 2013-04-22 16:38

By WU YIYAO in Shanghai (chinadaily.com.cn)

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The combined value of inventories of A-share listed companies more than doubled from 1.94 trillion yuan ($310 billion) in 2009 to 3.91 trillion yuan by the end of 2012, according to the Zhejiang Hithink Flush Information Network.

Realty developers contributed about 1.64 trillion yuan value of combined inventories by the end of 2012, followed by the manufacturing sector which contributed 1.15 trillion yuan.

The mining, construction and retail sectors had more than 100 billion yuan worth of inventories.

The financial sector reported the least combined inventories of all the major sectors, with a combined value less than 30 million yuan.

According to the companies financial report for the year ending on 31 Dec 2012, it may take up to three years to digest current inventories for some realty developers.

Some garment makers may take up to three decades to sell off their current inventories, which is a huge burden for the companies, analysts said.

Analysts said fast growth of inventories may reflect the negative side of company performance, including gloomy market sentiment, shrinking demand or tightened policies.