China Inc. Has $1 Trillion in Cash That It's Too Scared to Spend

While there are worse problems than having too much cash, China Inc.'s unprecedented hoard is frustrating both policy makers and investors. Because companies lack the confidence to spend on new projects, government attempts to boost growth by pumping money into the financial system are falling short. Stockholders, meanwhile, would rather see bigger dividends or share buybacks than a buildup of idle cash on corporate balance sheets. ... as economic growth moves deeper below 7 percent from double-digit levels just a few years ago, the change in mindset has been stark. Growth in China's private spending on fixed assets, which topped 10 percent last year, slowed to 2.8 percent in the six months through June, the weakest level on record.