Global Data said supply sentiment among China companies has dropped in the first quarter of 2022 citing the ongoing supply chain-related issues there driven by the country's zero-Covid policy.

The data analytics and consulting company said the resurgence of Covid-19 cases in China in 2022 is causing supply-related issues for Chinese companies yet again.

"Amidst the persistent lockdowns, the sentiment of China-based companies around 'Supply' and related keywords in the earnings call transcripts declined by 5% during Q1 2022 over Q4 2021," GlobalData said.

Citing its latest report, "Company Filings Analytics Trends & Signals Q1 2022," GlobalData said this "reveals overall company earnings call transcript mentions and sentiment of 'Supply Chain' plateaued in Q1 2022," yet it noted that it remained a key topic of discussion during the quarter when compared year-on-year.

"Supply chain disruptions were already apparent in 2021, as companies tried to mitigate issues by turning to alternate suppliers or locations. The current disruptions in China seem to be worsening as ports and distribution networks are already struggling due to harsher lockdowns," commented Rinaldo Pereira, business fundamentals analyst at GlobalData.

"Company filings data indicate that while there is a hint of positivity around optimizing supply and capacity, Chinese firms appear to be concerned about maintaining production or capacity due to uncertainties," Pereira added.

Meanwhile, the report noted that non-Asia-Pacific (APAC) companies' Q1 2022 sentiment around China improved with an 8% sequential growth. However, Q2 2022 (until 22 April) sentiment is down 15%.

"China-related issues are adding to the plight of companies already facing headwinds from inflation or other pandemic-related challenges. Firms expect muted recoveries or slower growth in China during Q2 2022 and are optimistic for the latter half of the year," Pereira said.