Economics
China Inc. Has $1 Trillion in Cash That It’s Too Scared to Spend
- Cash hoarding has frustrated government efforts to lift growth
- Some shareholders would rather see dividends than idle money
Why China Inc. Is Hoarding Cash
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Never before have China’s companies had so much cash and so little to spend it on.
With investment opportunities sparse amid the country’s weakest economic expansion in a quarter century, Chinese firms reported an 18 percent jump in cash holdings during their latest quarter, the biggest increase in six years. The $1.2 trillion stockpile -- which excludes banks and brokerages -- grew at a faster pace than in the U.S., Europe and Japan, according to data compiled by Bloomberg.