14 Jun 2022|Moody's Investors Service
After a promising recovery in China's economic growth in 2021 and early 2022, the spread of coronavirus infections and subsequent restrictions reduced activity significantly in several of the country’s biggest cities. While support measures will prop up growth with limited gains in general government debt, the funding gap for regional and local governments will increase, driving greater dependence on state-owned enterprises and local government financing vehicles for funding.
Local Government Financing Vehicles – China: LGFVs remain key to infrastructure projects despite evolving model, RLG support
13 Apr 2022|Moody's Investors Service
LGFVs continue to help RLGs in filling their funding gaps in infrastructure investment. The evolving LGFV business model and government support channels drive further credit differentiation.
Local Government Financing Vehicles – China: Slowing land sales put pressure on local governments and their financing vehicles
24 Mar 2022|Moody's Investors Service
Revenue growth from local governments' land sales will likely remain weak in 2022. Slowing income growth will pressure their fiscal profiles and reduce their capacity to support their LGFVs.
Moody's Creditview - China
23 Nov 2021|Moody's Corporation
The new Moody’s CreditView China provides you with the data transparency and quality you need to confidently assess and globally compare the largest Chinese bond issuers.
Government Policy – China: Two sessions aim for robust growth via targeted support; credit impact subject to policy implementation and transmission
11 Mar 2022|Moody's Investors Service
China’s ambitious growth target amid rising economic stress and external uncertainty to push up leverage, debt ratio; credit impact relies on growth outturn, effectiveness of implementation.
26 Jan 2022|Moody's Investors Service
Asian high-yield issuance is shrinking as credit quality deteriorates amid China property sector turmoil.
27 Jan 2022|Moody's Investors Service
We expect national contracted sales to decline 5%-10% in 2022 amid the tightened credit environment. Funding access will stay constrained, leading to higher refinancing risks for the sector.
Finance Companies – China: Uncertainties in effectiveness of keepwell deeds drive focus on issuers' fundamentals
10 Jan 2022|Moody's Investors Service
Recent court judgements continue to cast doubt on these arrangements, the effectiveness of which are subject to multiple legal issues as well as their issuance structure.
14 Dec 2021|Moody's Investors Service
The decline in shadow banking asset in 2021 reflects regulators’ continued focus on containing systemic risk in the financial sector. The economic leverage ratio will stabilize in 2022 as regulatory controls remain while economic growth slows.
09 Dec 2021
China’s growth momentum slowed in H2 2021, weighed down by muted consumer activity, intermittent COVID-related mobility restrictions, power shortages, supply chain backlogs and a slowdown in property construction. Consumption will gradually strengthen once COVID-19 concerns wane and demand for contact-intensive services picks up. Policy responses will drive the near-term growth outlook.
25 Nov 2021|Moody's Investors Service
The downturn in China’s property market will slow the country’s GDP growth in 2022, with losses and defaults in the sector also raising credit risk for developers, creditors, banks, regional and local governments, and households. However, the government has the policy tools to limit large-scale spillover risk to the financial system.
17 Nov 2021|Moody's Investors Service
企业融资部董庆雯认为以下因素导致债券违约增加：房地产等行业融资渠道收紧；投资者避险意识上升，尤其是在房地产开发商恒大集团出现财务危机之后；政府对国企的支持更有选择性。但相对整体境内外债券市场，违约发行人数量和违约金额仍将较低。若有迹象表明债券违约可能大幅上升或将触发系统性风险，中国政府将会出手干预。Related report: Nonfinancial Companies - China: Corporate bond defaults will continue rising in 2022; restructuring process is evolving
16 Nov 2021|Moody's Investors Service
央行数字人民币的正式发行和使用要求银行加大科技投入并提高网络安全和风险管理水平；同时，由于数字人民币支付即结算的特性，也将部分改变现有支付结算体系和货币供应结构。Related report: Banks – China: Design of e-CNY will minimize risk of bank disintermediation in its initial phase
11 Nov 2021|Moody's Investors Service
Our 2022 outlook for Chinese RLGs is negative in view of our expectations of a contraction in land sales revenue and at least a temporary renewed shift toward debt-financed growth.
28 Oct 2021|Moody's Investors Service
Tightened funding access has reduced liquidity. Developers have reduced spending on land and construction. Sales have declined. Risk aversion has increased, exacerbated by Evergrande’s credit distress and defaults by a few financially weak developers. Refinancing risk is rising as a result, especially for weak developers with significant near-term maturities.
21 Oct 2021|Moody's Investors Service
The tight credit environment continues to suppress onshore and offshore bond issuance for China’s property sector, slowing overall Asian high-yield bond issuance further. Rated issuance in Q3 ($4.6 billion) was much lower than in Q2 and Q1. And issuance for the first nine months of 2021 ($25.6 billion) was lower than during the same periods in 2020 and 2019.
China’s common prosperity agenda creates transition risks, with longer-term benefits if well implemented
20 Oct 2021|Moody's Investors Service
China’s plan to achieve economic sustainability by addressing income inequality and social risks will have far-reaching effects for many types of debt issuers. A lack of predictability and clear communication around policy implementation are the key near-term risks, while potential long-term benefits include improved productivity and social stability.
13 Oct 2021|Moody's Investors Service
Gary Lau of the Corporate Finance team and Michael Taylor of the Credit Strategy & Research team discuss China Evergrande’s financial troubles and the credit implications for China’s property market, banks, government and potential spillover
s to the global economy.