Top 10 failing industries in China

%3CP%3E%3CFONT%20face%3DVerdana%3EWith%20some%20industries%20in%20China%20possibly%20facing%20bankruptcy%2C%20the%20Beijing%20Youth%20Daily%20interviewed%20several%20market%20observers%20and%20experts%20to%20compile%20a%20list%20of%20the%20top%20ten%20industries%20in%20China%20that%20are%20likely%20to%20face%20a%20shutdown.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20first%20such%20sector%20could%20be%20that%20of%20group-buying%20websites.%20The%20group%20buying%20business%20model%20gained%20popularity%20when%20it%20was%20first%20introduced%20in%20March%202010.%20But%20several%20noted%20group%20buying%20sites%2C%20such%20as%20Tuanbao%20and%20Juqi%2C%20have%20been%20experiencing%20operational%20difficulties.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAs%20of%20June%202013%2C%204%2C670%20of%20the%20total%206%2C218%20group%20buying%20websites%20operating%20across%20China%20have%20closed%20shop%2C%20data%20show.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMore%20group%20buying%20websites%20will%20face%20closure%20as%20the%20top%20five%20group%20buying%20sites%20account%20for%20more%20than%2090%25%20of%20market%20share%2C%20while%20the%20remainder%20struggle%20to%20survive%20with%20less%20than%20one%20percent%20of%20the%20market%2C%20said%20an%20industry%20insider.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EShipbuilding%20corporations%20could%20also%20face%20insolvency%20this%20year.%20When%20China%27s%20shipbuilding%20industry%20entered%20its%20golden%20era%20in%202004%2C%20the%20number%20of%20shipbuilders%20grew%20rapidly.%20However%2C%20the%20global%20shipbuilding%20market%27s%20performance%20has%20been%20lackluster%20due%20to%20the%20global%20financial%20crisis.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAbout%201%2C000%20shipbuilding%20businesses%2C%20private%20ones%20in%20particular%2C%20have%20shut%20down%20since%20last%20year%2C%20mainly%20because%20of%20a%20lack%20of%20funding.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ETaizhou%20in%20Zhejiang%20province%20was%20a%20world%20renowned%20base%20for%20manufacturing%20small%20and%20medium-sized%20boats%2C%20having%20more%20than%20190%20shipbuilding%20factories.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELocal%20businessmen%20in%20the%20industry%20estimated%20that%20a%20large%20number%20of%20small%20shipbuilders%20would%20have%20to%20close%20down%20during%20the%20beginning%20of%20the%20back%20half%20of%20this%20year.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20third%20industry%20facing%20tough%20times%20is%20China%27s%20steel%20and%20iron%20industry.%20Private%20companies%20have%20been%20considering%20closure%20due%20to%20a%20lack%20of%20funding%2C%20while%20state-run%20firms%20can%20only%20survive%20based%20on%20support%20lent%20by%20government%27s%20capital.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EAn%20industry%20researcher%20said%20excess%20capacity%20has%20resulted%20in%20declining%20profitability%20levels%20and%20the%20creation%20of%20a%20deficit.%20He%20added%20that%20this%20industry%20was%20no%20longer%20highly%20profitable%2C%20but%20could%20survive%20based%20on%20small%20profits.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESome%20experts%20pegged%20the%20market%20value%20of%20the%20LED%20sector%20at%2030%20billion%20yuan%20%28US%244.9%20billion%29.%20However%2C%20excess%20capacity%20has%20led%20to%20price%20battles%2C%20which%20will%20wipe%20out%2060%25%20of%20downstream%20factories%20in%20the%20next%20two%20to%20three%20years.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESmall%20and%20medium-sized%20real-estate%20firms%20are%20also%20in%20danger.%20As%20large%20real-estate%20developers%20continue%20to%20acquire%20land%2C%20it%20has%20become%20increasingly%20difficult%20for%20small%20and%20medium-sized%20businesses%20to%20survive.%20A%20China%20Real%20Estate%20Association%20official%20predicted%20that%2030%25%20of%20developers%20on%20mainland%20China%20would%20file%20for%20bankruptcy%2C%20bringing%20down%20the%20total%20number%20of%20developers%20from%2050%2C000%20to%2035%2C000%20during%20the%20next%20three%20years.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHome%20improvement%20retailer%20Orient%20Home%20Center%2C%20which%20was%20the%20largest%20of%20its%20kind%20in%20China%2C%20is%20currently%20filing%20for%20bankruptcy.%20American%20retailer%20Home%20Depot%20has%20already%20closed%20all%20its%20physical%20stores%20in%20China.%20B%26amp%3BQ%20of%20the%20United%20Kingdom%20also%20cut%20its%20store%20count%20to%20about%2040%20from%20the%20original%2060.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EMarket%20observers%20are%20of%20the%20view%20that%20their%20closure%20could%20be%20attributed%20to%20their%20old-fashioned%20style%20of%20operating.%20In%20addition%2C%20some%20foreign%20firms%20have%20failed%20to%20understand%20Chinese%20consumers%27%20needs.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20seventh%20industrial%20sector%20facing%20tough%20times%20is%20the%20shipping%20business.%20The%20losses%20suffered%20by%20the%20shipping%20industry%20are%20worsening%20because%20of%20the%20global%20economic%20downturn%20and%20excess%20capacity.%20State-run%20shipping%20companies%20are%20only%20being%20sustained%20by%20government%20subsidies.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ETrust%20companies%20in%20China%20also%20face%20closure.%20The%20scale%20of%20trust%20assets%20in%20China%20exceeds%201%20billion%20yuan%20%28US%2416.37%20million%29.%20However%2C%20a%20bubble%20has%20been%20created%20in%20the%20industry%20due%20to%20the%20surging%20value%20of%20assets.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EA%20scholar%20stated%20that%20the%20trust%20industry%20was%20facing%20difficulties%20in%20development%20and%20because%20of%20other%20potential%20risks.%20Trust%20firms%20need%20to%20take%20a%20serious%20note%20of%20these%20problems%20if%20they%20wanted%20to%20ensure%20continued%20and%20healthy%20growth%20in%20the%20sector.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20main%20bottleneck%20faced%20by%20third-party%20financial%20management%20firms%20is%20high%20costs%20levied%20by%20banking%20regulators%20and%20third-party%20payment%20houses.%20Market%20observers%20said%20only%20companies%20that%20did%20not%20have%20sufficient%20professional%20knowledge%20would%20be%20eliminated%20first.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20Beijing%20Youth%20Daily%20lastly%20mentioned%20the%20private%20equity%20industry.%20As%20it%20had%20become%20difficult%20for%20private%20equity%20companies%20to%20raise%20funds%2C%20many%20are%20facing%20a%20shutdown%2C%20the%20newspaper%20pointed%20out.%3C/FONT%3E%3C/P%3E%3CFONT%20face%3DVerdana%3E%0D%0A%3CP%3E%3CBR%3E%28China%20Economic%20Net%29%3C/FONT%3E%3C/P%3E