SHANGHAI (Reuters) - Listed Chinese companies other than those in the finance sector are in their worst financial shape in a decade, a research body under China's Ministry of Commerce said.
An index which tracks the health of 2,560 non-finance listed companies is expected to fall to a decade-low this year, recording the fastest on-year drop in five years, according to a report by the Chinese Academy of International Trade and Economic Cooperation.
The academy said 807 firms faced financial risks, some major. That is an increase of 179 from the year earlier. Meanwhile, 964 companies were suspected of white-washing their accounts to varying degrees.
The report also said 414 firms faced financial risks and were suspected of doctoring their financial statements.
The index indicated that GDP growth would be 6.3 percent this year, the academy said, lower than the targeted growth of between 6.5 to 7 percent announced by the National People's Congress in March.
(Reporting by Engen Tham and Samuel Shen; Editing by Stephen Coates)