S&P Corporate Cash Trends

Corporate Cash Trends

FROM GLOBAL MARKETS INTELLIGENCE

Author

Richard Peterson

Director

S&P Capital IQ

+1 212 438 1083

richard.peterson

@spcapitaliq.com

GMI CASH PLAYBOOK:

A review of the largest cash balances held by non-financial China-based firms, conducted

the Global Markets Intelligence (GMI) research unit of S&P Capital IQ, finds an eclectic

assortment of companies. These firms come from a diverse representation of industries

including energy, transportation, online commerce, and construction. As opposed to the

leading U.S. corporate cash rankings that include several health care companies, our

examination uncovered only a single Chinese health care company, Shanghai Fosun

Pharmaceutical (Group) Co., Ltd. (SHSE:600196), with a notable ($3.16 billion) cash position

on its balance sheet. The firm not only ranks outside of the top ten in terms of Chinese cash

balances, but the top fifty companies as well.

Alibaba Group Holding Limited ranks as the top non-financial Chinese company for cash,

holding $33.8 billion in cash and short-term and long-term investments as of the June 30,

2015, reporting period. This represents a 20% increase from the $28.1 billion balance held

as of March 31, 2015. PetroChina Co. stands as the second leading non-financial Chinese

company in terms of cash holdings with $30.4 billion on its balance sheet. That was a

decline of 5% from its year-end 2014 report of $32 billion in cash. The third leading nonfinancial cash rich Chinese company is Beijing-based construction and engineering firm

China State Construction Engineering Corporation Limited. Based on recent reports, the

company holds $29.7 billion in cash and investments on its balance sheet. That’s slightly

higher than the $29.6 billion reported at year-end 2014. Earlier this year, real estate

development firm China Overseas Land & Investment Ltd. (SEHK:688) agreed to acquire

Celestial Domain Investments Limited from China State Construction...