Chinese seafood firms at home were riding high on a bull stock market, which crashed in July. As SeafoodSource’s Chinese correspondent and contributing editor Mark Godfrey puts it: “Lots of firms raised more cash and paid down borrowings in recent years thanks to a bull market.”
“But the bull run which ended disastrously in a July crash also meant that share prices became detached from the fundamentals of the companies and the industry. In the run up to the recent stock market crash analysts at Credit Suisse in a report claimed that the Chinese stock market was over-valued by 20 percent,” Godfrey added.
And even after the fall, it seems like Chinese seafood firms are still overvalued, according to Godfrey. Explore what kind of problems Chinese seafood is up against in the wake of the nation’s stock market crash here: http://www.seafoodsource.com/commentary/what-china-s-market-crash-means-for-seafood-company-valuations
