China Growth & Credit
Policy uncertainties around trade, unforeseen events like coronavirus outbreak, as well as long-term structural challenges pose credit risks to China, increasing credit differentiation between domestic regions and sectors.
  • 概要
  • レポート
  • Sub-sovereign
    16 Sep 2021|Moody's Investors Service
    Tightening government measures will drive further divergence in LGFVs’ funding access.
    09 Jul 2021|Moody's Investors Service
    China has committed to reaching peak carbon emissions by 2030 and achieving carbon neutrality by 2060. This will promote an increase in national energy efficiency over the next decade, but the implementation of carbon transition will be uneven across provinces.
    17 Mar 2021|Moody's Investors Service
    Hunan is a province with moderate credit risk; economic development concentrated in provincial capital Changsha. Hunan has a large LGFV sector dominated by LGFVs owned by provincial and Changsha governments. Hunan’s policies and measures to manage LGFV debt are credit positive for LGFVs in the province.

    03 Sep 2021|Moody's Investors Service
    China cuts reserve requirement rate, adding liquidity to the onshore bond market, but the impact on companies’ funding access will be uneven.

    01 Sep 2021|Moody's Investors Service
    We changed the industry outlook to negative because developers' access to onshore and offshore funding is constrained, which reduces liquidity and cash flow and raises refinancing risk.
    31 Aug 2021|Moody's Investors Service
    The government is likely to support distressed state-owned enterprises (SOEs) that are strategically important, have strong government links and are industry leaders, such as subway-system operators in large cities. But the government is increasingly likely to allow less strategically important SOEs to default or restructure debt, if a default is unlikely to cause systemic risk.
    19 Aug 2021|Moody's Investors Service
    This report provides a summary of recent rating actions, bond issuance and updates on government policies affecting rated Chinese state-owned enterprises (SOEs). 
    07 Jun 2021|Moody's Investors Service
    Key economic activity indicators point to China’s recovery having strengthened and become more broad based in H1 2021

    19 Aug 2021|Moody's Investors Service
    The People’s Bank of China is testing a digital version of the renminbi. If adopted on a widespread basis, the e-CNY, as it would be called, has the potential to strengthen banks' role in the e-payment system while also increasing competition for technology companies.

    02 Aug 2021|Moody's Investors Service
    China's semiconductor industry development plan will bring credit benefits for the sovereign if it leads to development of more advanced products and mitigates strategic vulnerabilities. But over-investment in certain types of semiconductors could lead to resource misallocation, resulting in higher credit risks for smaller and private domestic producers.

    14 Jul 2021|Moody's Investors Service
    We estimate aggregate average adjusted debt/EBITDA will decrease slightly for rated Chinese state-owned enterprises (SOEs) in 2021 and 2022 as EBITDA growth increases and debt growth slows. But the ratio will remain higher than in 2017-19.

    29 Jun 2021|Moody's Investors Service
    Local government financing vehicles (LGFVs) are the largest category of issuers in China’s onshore corporate bond market, accounting for 45% of total onshore corporate bonds outstanding. And they accounted for just over 20% of Chinese corporate offshore issuance in 2018-20. LGFV bond prices have held largely steady since the pandemic, reflecting investor confidence.

    15 Jun 2021|Moody's Investors Service
    Ning Loh and Ralph Ng of the Project and Infrastructure Finance team discuss how infrastructure real estate investment trusts (REITs), a new financing model in China, have the potential to develop into a large investment market over the next decade. The new capital generated from REITs will support infrastructure expansion to boost China’s economic growth and provide deleveraging opportunities for infrastructure companies.​ >> Related report

    27 May 2021|Moody's Investors Service
    China’s goal to cut carbon dioxide emissions to net zero by midcentury will have credit implications for Chinese entities across sectors, with the biggest carbon-emitting industries the most exposed to energy transition risks.

    24 May 2021|Moody's Investors Service
    The government is increasingly likely to withhold its support for certain distressed state-owned enterprises (SOEs) and allow losses to creditors through default or debt restructuring unless the likelihood of systemic risk from default is high. It is seeking to ensure stable funding for SOEs, but also narrow the range of SOEs that investors expect would receive support.

    Lillian Li
    VP, Senior Credit Officer