Chinese companies are unable to respond to the government's call for economic stimulus

In the past, Chinese companies saw an increase in investment when they saw growth. Now, the reality of falling profits and rising stocks has eroded their enthusiasm. The Chinese economy has been slow to see signs of improvement. Bank of Switzerland (UBS) economist Wang Tao is the latest economist to cut China's economic growth expectations. She lowered China's expected GDP growth in 2012 to 7.5 percent from the previous forecast of 8%. In order to promote economic growth, the Chinese government lowered interest rates in June and July, but so far no results have been achieved. As for the reasons, perhaps you can find the answer from the balance sheet of Chinese listed companies. According to CapitalVue, in the second quarter of this year, China's 2,500 A-share listed companies accounted for 46.5% of the quarter's revenue, compared with 31.2% at the end of 2008. Receivables accounted for 31.2% of revenues, compared with 17.6% at the end of 2008. Inventories of unsold goods are also increasing. Inventories of A-share listed companies accounted for 76.6% of the quarter's revenue in the second quarter, down slightly from 81.9% in the first quarter, but still at historically high levels. At the end of 2007, this figure was only 48.0%. From the coping and increasing receivables, it can be seen that the actual demand in the Chinese market is weak, and the supply chain is completely maintained by borrowing. A rise in inventories means that even if demand picks up, the factory still has a lot of inventory to clean up before it increases production. Not only that, but the profits of Chinese companies in the second quarter fell by 1.6% from the same period of the previous year. Combined with this factor, rising stocks also mean overcapacity. This explains why the two interest rate cuts failed to promote Chinese companies to reinvest. China has been slow in increasing its economic stimulus. Lower inflation rates and strong public finances mean that the Chinese government has room to implement more initiatives. But the problem is that even if the government blew the horn of the economy, Chinese companies could not afford to charge.

UCT Series Bearing

Product Name	ASAHI Pillow Block Bearing UCT 205 bearing UCT205
Brand	WST / NSK / NTN / KOYO / ASAHI / OEM
Model Number	UCT205
Material	Chrome steel / Stainless Steel
Precision	P0, P6, P5, or as requested
Vibration	ZV1, ZV2, ZV3, or as requested
Clearance	C0,C2,C3, or as requested
Features	Compact structure, sensitive rotation and easy maintenance etc.
Quality standard	ISO9001:2000/ SGS
Quality Control Process	1.Assembly
	2.Windage test
	3.Cleaning
	4.Rotary test
	5.Greasing and gland
	6.Noise inspection
	7.Appearance inspection
	8.Rust prevention
	9.Product packaging
Application	Bearings for agricultural machinery, bearings for food processing and packaging, bearings for mining machinery, bearings for construction machinery