Next six months for consumer companies?

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In what could be a harbinger of things to come in the U.S., almost half of China’s listed retailers don’t have enough cash to survive the next six months.

“We expect smaller players to be more vulnerable due to tight working cash flow, and some players will exit the market, leading to a higher level of consolidation,” said Jefferies analyst Mark Yuan.

Data released Monday already showed that retail sales in the world’s second largest economy plunged 20.5% in the first two months of the year, while China is also on guard for a second wave of infections.

Source: dailystockbuzz

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