May 13, 2022 07:58 PM

Small Businesses Suffer as Lockdowns Cut Revenue, Cash Flow

China’s small businesses are grappling with tighter cash flow and diminishing revenue as their costs rise and demand weakens, a survey shows.

The pressure on smaller companies’ liquidity reflects the impact of the country’s “zero-Covid” strategy, as extended lockdowns disrupt or altogether prevent activity and weaken sentiment going forward.

In the first quarter, the polled micro and small businesses had enough cash flow to operate for 2.4 months on average, down 0.3 months for the fourth quarter of 2021, according to a survey jointly conducted by Peking University and fintech giant Ant Group Co. Ltd.

You've accessed an article available only to subscribers
Share this article
Open WeChat and scan the QR code
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription
Caixin-Sinica Business Brief: Hong Kong to Allow Retail Investors to Trade Crypto