Chinese retailers were the only industry group to report profit margin improvements in the first quarter, particularly those in food and staples retailing, according to Credit Suisse Group AG.
“While sales growth is not a problem for Chinese companies, margin squeeze is a big problem,” Credit Suisse said in a report. “This is a clear reflection of the negative effect of inflation and commodity price increase on the profitability of Chinese companies.”
Crdit Suisse said 46 percent of all non-financial companies that reported either made a loss in the quarter or had a margin decline, while 28 percent had a margin improvement.
To contact the editor responsible for this story: Allen Wan at firstname.lastname@example.org