Machinery Makers Change Books to Appear More Profitable, Analysts Say

(Beijing) – Major Chinese heavy machinery makers are lowering accounting standards, a move analysts say allows them to post higher paper profits under rules that are less strict.

In an announcement on October 21, Sany Group Co. Ltd. said it had reduced the ratios of provisioning for bad loans in some receivables, including those that had been overdue for less than three years. The change affected more than 96 percent of the firm's receivables.