Canton Trade Fair attracts fewer exhibitors because of global gloom

THE number of exhibitors at the autumn session of the Canton Trade Fair has fallen the most since 2009 because of a subdued global economy and weaker currencies in key markets.

The twice-yearly Canton Fair, held in three gigantic conference halls in eastern Guangzhou, is a gauge of the mainland's export performance in the following six to nine months, according to Hong Kong's South China Morning Post.

Only the leading companies or the companies that have their own branding could survive this tough economic situation, according to Guangzhou University economist Liu Songping.

At a time when the recovery of the US economy is being undermined by concerns about the debt ceiling, the number of exhibitors at the 114th Canton Fair has fallen by 229 to 24,517, the biggest drop since 2009 downturn.

"The fall in exhibitors hints that the initial recovery in the mainland's export growth will be thwarted by the uncertainty in the US," said Linus Yip Sheung-chi, a strategist at First Shanghai Securities.

Canton Fair spokesman Liu Jianjun said the decline was the result of a "selection of strength" policy to ensure the quality of the exporting companies.