Credit Risk for China Valve Industry, 2014

Valve is a device that connects or cuts off medium in pipelines and regulates flow. It is key components in petroleum, chemical, power station, pipelines, nuclear industry, etc. China has the most valve manufacturers in the world. The number is about 6,000. In recent years, China valve industry has developed highly for national economy growth.
Form January to December, 2012, nationwide total output of valves is 7,213,025 tons, increased by 11.23% compared with 2012. In 2013, total output is 8,002,394.78 tons, raised by 4.12% from the year before.
China valve industry has a bright future for several reasons:
1. Support form national policies. With the gradually advancement of policy that promoting machinery, general manufacturing base gets key support in further. 
2. High demands for valve in market. Sustainable developing of state owned economy and expanding of fixed asset investment such as West-East natural gas transmission project, West-East electricity transmission project and South-North water transfer project require a large number of valves. Otherwise, with coming of industrialization, petroleum, metallurgy, chemical engineering and other industries will strengthen demands for valve products.
For that, banks and other financial institutions should estimate credit risk in valve industry when making credit decisions.   
Sep 23,2016
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