Risks of overinvestment are showing in several sectors across the Chinese corporate landscape. "Risks of overinvestment appear in the manufacturing of auto, raw chemicals, and electrical equipment," said S&P Global Ratings credit analyst Charles Chang. "Capital expenditure and mergers and acquisitions will moderate for most Chinese firms in the next few years. However, global ambitions remain strong for some large corporates in industries facing overinvestment risks. They continue to show appetite for overseas investments despite ongoing trade tensions," Mr. Chang said.