Global bankruptcies will increase, warns AllianzA bankruptcy trend is expected to become apparent around the world and the number of
liquidations of Hong Kong companies may increase by 10 percent next year, according to a report by credit insurer Allianz Trade.
The war in Ukraine and China's strict Covid restrictions, are seen to be increasing risks facing businesses and the number of global corporate bankruptcies is set to rebound this year and next with
increases of 10 percent and 14 percent respectively.
The figure for
corporate liquidations in Hong Kong jumped around 28 percent year-on-year in 2021 to nearly 300.
Allianz Trade expects the number to remain roughly unchanged this year but to increase by 10 percent to 330 in 2023.
The number of insolvent Chinese companies is expected to increase by 1 percent this year and 11 percent in 2023.
In the United States the number of bankruptcies are expected to
increase by 8 percent this year and 23 percent in 2023, though many US firms have built up strong cash reserves since the pandemic thanks to subsidies and surges in profit.
Companies everywhere, Allianz Trade notes, are again facing multiple headwinds, ranging from long-term supply chain disruptions and transport bottlenecks to high raw material costs and supply shortages.
Source: The Standard
https://www.thestandard.com.hk/section- ... ns-Allianz
Posted: Sun May 15, 2022 1:15 pm