Banking System Outlook China - Steady operating environment amid balancing policies drive stable outlook
Rising trade tension and indications that deleveraging and de-risking are starting to weigh
on investment have shifted Chinese authorities' focus toward more accommodative policy
and balancing its efforts between promoting deleveraging and sustaining growth. This will result in an operating environment broadly supportive of bank credit quality and stable asset quality in the next 12-18 months. However, it also suggests that the country's exposure to high economy-wide leverage will still be slow to reduce.
