Chinese firms 'face slower growth'

Slump due to economic slowdown, especially in the European markets

Chinese enterprises' net income and revenue growth for 2012 fell sharply due to the economic slowdown, Fitch Ratings said in a report.

According to Fitch's analysis, which is based on a sample portfolio of 40 Chinese corporations, their net income growth fell by 11 percent in 2012.

The portfolio can be broken down into 15 State-owned enterprises and 25 non-governmental businesses.

The analysis focuses on the aggregate, average and median performance of Fitch's portfolio of the 40 Chinese companies in an attempt to present some overall trends and conclusions.

Fitch forecasts the average net income growth for the 40 corporations will slow to just 0.1 percent in 2012 from 10 percent in 2011.

The fall in net income is broadly in line with China's recent overall economic performance this year, the report said.

Although both the Chinese official purchasing managers' index and HSBC's Purchasing Managers' Index rose above the crucial reading of growth or decline in October, showing signs of recovery, China's economic growth is set to slow down this year.

Royal Bank of Scotland expects China's gross domestic product growth to be around 7.6 percent in 2012 and, with a modest recovery, around 8 percent in 2013, the bank's China economist said.

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