04.06-Chinese companies Chinese companies Red chips, red faces The creditworthiness of China s big state firms is worsening Dec 5th 2015 SHANGHAI From the print edition 1. chip n. blue chip red chip 2. creditworthiness n. THERE was a time when China s biggest state-owned enterprises were seen as the country s crown jewels. The government cleaned up the balance-sheets of the best of the firms, and listed their shares on stockmarkets at home and abroad. The firms were dubbed red chips, the supposed blue chips of state capitalism, by fawning analysts. 1. crown jewel n. ( ) The Crown Jewels are the crown, sceptre, and other precious objects which are used on important official occasions by the King or Queen. 2. dub v. ; If someone or something is dubbed a particular thing, they are given that description or name. e.g. At the height of her career, Orson Welles dubbed her 'the most exciting woman in the world'. 3. capitalism n. ( ) Capitalism is an economic and political system in which property, business, and industry are owned by private individuals and not by the state. 4. fawn v. to try to please sb by praising them or paying them too much attention 恭维 ; 讨好 ; 巴结 e.g. People fawn over you when you're famous... The firms were dubbed red chips, the supposed blue chips of state capitalism, by fawning analysts. The firms were dubbed red chips supposed by fawning analysts red chips red chips In fact, China s big state firms were largely a bloated, inefficient and cosseted lot. The real dynamism in the Chinese economy has long come from its entrepreneurial private firms, which now account for perhaps two-thirds of the country s entire economic output. 1. bloated adj. If you describe an organization as bloated, you mean that it is larger and less efficient than it should be.
e.g....its massive state apparatus and bloated bureaucracy. 2. cosset v. =pamper If someone is cosseted, everything possible is done for them and they are protected from anything unpleasant. cosseted I don't want to be treated like a cosseted movie queen. 3. dynamism n. energy and enthusiasm to make new things happen or to make things succeed 精力 ; 活力 ; 劲头 4. entrepreneurial adj. ; Entrepreneurial means having the qualities that are needed to succeed as an entrepreneur. 5. account for PHRASAL VERB If a particular thing accounts for a part or proportion of something, that part or proportion consists of that thing, or is used or produced by it. Thanks to weak commodity prices, a troubled property market and slowing economic growth, the outlook for all Chinese corporations is dimmer than it was a few years ago. But debt is a much bigger problem at the largest state firms. A report released on November 30th by Standard & Poor s, a credit-rating agency, looks at 200 public and private Chinese firms in 18 industries and warns that the creditworthiness of many big state firms has worsened significantly. S&P found that the average ratio of gross debt to earnings (before interest, tax, depreciation and amortisation, or EBITDA) at state firms rose from roughly 3 in 2008 to over 5 last year. 1. commodity n. (economics ) a product or a raw material that can be bought and sold 商品 e.g. rice, flour and other basic commodities 稻米 面粉和其他基本商品 2. corporation n. (abbr. Corp. ) a large business company ( 大 ) 公司 e.g. multinational corporations 跨国公司 3. dim v. ( )( ) ;( ) If your future, hopes, or emotions dimor if something dims them, they become less good or less strong. dimmer 4. ratio n. ; ; A ratio is a relationship between two things when it is expressed in numbers or amounts. For example, if there are ten boys and thirty girls in a room, the ratio of boys to girls is 1:3, or one to three. e.g. In 1978 there were 884 students at a lecturer/student ratio of 1:15...1978 884 1 15 5. gross adj. Gross means the total amount of something, especially money, before any has been taken away. 6. depreciation n. [mass noun] a reduction in the value of an asset with the passage of time, due in particular to wear and tear 7. amortisation n. Thanks to weak commodity prices, a troubled property market and slowing economic growth,
the outlook for all Chinese corporations is dimmer than it was a few years ago. the outlook is dimmer Thanks to A, B and C thanks to it was a few years ago it the outlook The worries are most acute among metals firms, such as Hebei Iron & Steel, and transport companies, such as China COSCO, a shipping line. The agency gives both of those companies a maximum financial-risk rating of 6. The main exceptions to the trend, the report notes, are state firms in industries such as telecoms and energy, which the government protects from serious competition. 1. acute adj. very serious or severe 十分严重的 e.g. There is an acute shortage of water. 水严重短缺 2. telecom n. 3. exception n. a person or thing that is not included in a general statement 一般情况以外的人 ( 或事物 ); 例外 e.g. Most of the buildings in the town are modern, but the church is an exception. 城里大多是现代建筑, 不过教堂是个例外 The main exceptions to the trend, the report notes, are state firms in industries such as telecoms and energy, which the government protects from serious competition. the report notes notes The main exceptions are state firms in industries such as telecoms and energy which the government protects from serious competition. telecoms and energy Private firms are not without their problems, although the ratio of gross debt to EBITDA at such firms remains below 4 on average. The property sector and bricksand-mortar retailers have been hit hard of late, and private firms with exposure to them such as Fosun, one of China s largest private conglomerates are also seeing a deterioration in their creditworthiness. But most private firms are in e- commerce, consumer businesses and technology services, which are less politicised industries that are still doing well. 1. bricks-and-mortar n. 2. exposure n. ~ (to sth ) the state of being in a place or situation where there is no protection from sth harmful or unpleasant 面临, 遭受 ( 危险或不快 ) e.g. prolonged exposure to harmful radiation 长时间接触有害辐射 3. conglomerate n. (business ) a large company formed by joining together different firms 联合大公司 ; 企业集团 e.g. a media conglomerate 大众传媒联合体 4. deterioration n. 5. politicize v. to make sth a political issue 使政治化 ; 使带有政治色彩 e.g. the highly politicized issue of unemployment 高度政治化的失业问题
6. of 'late (formal ) recently 最近 ; 新近 ; 近来 7. property sector n. The property sector and bricks-and-mortar retailers have been hit hard of late, and private firms with exposure to them such as Fosun, one of China s largest private conglomerates are also seeing a deterioration in their creditworthiness. The property sector and bricks-and-mortar retailers have been hit hard of late of late and private firms with exposure to them them The property sector and bricksand-mortar retailers such as Fosun, one of China s largest private conglomerates are also seeing a deterioration in their creditworthiness. private firms The conventional wisdom has long been that China s biggest and best-known state firms will never be allowed to default, no matter how weak their finances. But doubts are now creeping in. Christopher Lee of S&P, an author of the agency s report, says, there is a growing sense that the weakest are not default-free. The question for officials now, he reckons, is how to let them go without sparking a systemic meltdown. 1. conventional adj. Someone who is conventional has behaviour or opinions that are ordinary and normal. e.g....a respectable married woman with conventional opinions. 2. conventional wisdom IDM conventional/ received 'wisdom the view or belief that most people hold 大多数人的看法 ; 普遍信念 e.g. Conventional wisdom has it that riots only ever happen in cities. 人们普遍认为, 只有城市里才发生暴乱 3. default n. failure to do sth that must be done by law, especially paying a debt 违约 ( 尤指未偿付债务 ) e.g. The company is in default on the loan. 这家公司拖欠借款 4. creeping adj. happening or moving gradually and not easily noticed ( 不知不觉地 ) 逐渐发生的 ; 缓慢行进的 5. spark v. ~ sth (off ) to cause sth to start or develop, especially suddenly 引发 ; 触发 e.g. The proposal would spark a storm of protest around the country. 这一提案将引发全国性的抗议浪潮 6. systemic adj. ; ; Systemic means affecting the whole of something. e.g. The economy is locked in a systemic crisis. 7. meltdown n. ( ) The meltdown of a company, organization, or system is its sudden and complete failure. e.g. Urgent talks are going on to prevent the market going into financial meltdown during the summer. From the print edition: Business Chinese companies
Red chips, red faces 中国公司 : 红筹股, 红了脸 The creditworthiness of China's big state firms is worsening. 中国 型国有企业的信 正在恶化 There was a time when China's biggest state-owned enterprises were seen as the country's crown jewels. The government cleaned up the balance-sheets of the best of the firms, and listed their shares on stock markets at home and abroad. The firms were dubbed "red chips", the supposed blue chips of state capitalism, by fawning analysts. 中国最 型的国有企业曾被视为民族 皇冠上的宝 中国政府清算了业绩最佳的国有企业的资产负债平衡表, 并让它们在国内外上市 对政府阿谀奉承的分析师将这些企业称之为 红筹股, 也就是所说的国家资本主义蓝筹股 ( 译者注 : 中国在国际上有时被称为红 中国, 相应地, 港和国际投资者把在境外注册 在 港上市的那些带有中国 陆概念的股票称为红筹股 ) In fact, China's big state firms were largely a bloated, inefficient and cosseted lot. The real dynamism in the Chinese economy has long come from its entrepreneurial private firms, which now account for perhaps two-thirds of the country's entire economic output. 事实上, 中国 型的国有企业在很 程度上集膨胀 低效 过度保护于 长期以来, 中国经济真正的动 都来 于有企业家精神的私营企业, 前这些私营企业 概占中国全部经济产出的三分之 Thanks to weak commodity prices, a troubled property market and slowing economic growth, the outlook for all Chinese corporations is dimmer than it was a few years ago. But debt is a much bigger problem at the largest state firms. A report released on November 30th by Standard & Poor's, a credit-rating agency, looks at 200 public and private Chinese firms in 18 industries and warns that the creditworthiness of many big state firms has worsened significantly. S&P; found that the average ratio of gross debt to earnings (before interest, tax, depreciation and amortization, or EBITDA) at state firms rose from roughly 3 in 2008 to over 5 last year. 由于 宗商品价格疲弱 房地产 业低迷以及经济增长放缓, 中国企业的前景都 前 年要暗淡 些 但对庞 的国企来说, 负债是个更 的问题 11 30, 信贷评级机构标准普尔发布了 篇报告, 评估了中国 18 种 业中的 200 家国有和私营企业, 并警告称, 许多 型国企的信 评级已显著恶化 标准普尔机构发现, 国有企业的负债收 ( 未计利息, 税项, 折旧及摊销前的利益, 或者说息税折旧摊销前利润 ) 从 2008 年 概的 3, 增长 去年的超过 5 The worries are most acute among metals firms, such as Hebei Iron & Steel, and transport companies, such as China COSCO, a shipping line. The agency gives both of those companies a maximum financial-risk rating of 6. The main exceptions to the trend, the report notes, are state firms in industries such as telecoms and energy, which the government protects from serious competition. 最令 担忧的是钢铁企业和运输公司, 如河北钢铁以及中国远洋 标准普尔给这两家企业的财务风险等级评定为 6 最 的风险级别 报告指出, 像电信和能源这种 业, 因有政府保护 免受严峻竞争, 因此少见这种信 评级恶化的现象
Private firms are not without their problems, although the ratio of gross debt to EBITDA at such firms remains below 4 on average. The property sector and "bricks-and-mortar" retailers have been hit hard of late, and private firms with exposure to them such as Fosun, one of China's largest private conglomerates are also seeing a deterioration in their creditworthiness. But most private firms are in e-commerce, consumer businesses and technology services, which are less politicised industries that are still doing well. 私营企业也有 的问题, 尽管这些企业的平均负债收 维持在 4 以下 近来, 房地产 业和实体零售商已受到严峻打击, 涉及到这些 业的私营企业, 如中国最 的综合类民营企业之 复星国际, 信 也在恶化 但 部分的私营企业都属于电 商务 消费交易和科技服务 业, 这些政治 彩不强的 业仍然经营得很好 The conventional wisdom has long been that China's biggest and best-known state firms will never be allowed to default, no matter how weak their finances. But doubts are now creeping in. Christopher Lee of S&P;, an author of the agency's report, says, "there is a growing sense that the weakest are not default-free." The question for officials now, he reckons, is "how to let them go without sparking a systemic meltdown". 长期以来 们的传统观念是, 不管财务状况多么糟糕, 中国最 最知名的国企从来都不会违约 但现在疑虑悄然 标准普尔机构的克 斯托弗 李是报告的作者之, 他表 : 越来越多的 意识到, 财务状况最糟糕的国企也并 不会违约 他认为 前官员所 临的问题是 如何让这些企业发展下去, 不会引发系统性崩盘