06 Aug 2020|Moody's Investors Service
Funding difficulties for privately owned enterprises will continue in 2020 because recent government easing measures will not change onshore investor preference for state-owned enterprises.
PBOC's updated methodology to assess banks’ green activities would encourage prudent environmental risk management
03 Aug 2020|Moody's Investors Service
On 21 July, the People’s Bank of China (PBOC) published for public comment a draft regulation updating its methodology to assess banks’ green activities. The draft regulation is credit positive because of the increased weight attached to measuring the quality of green assets, including green loans and investments in green bonds in the central bank's regulatory evaluation of banks.
29 Jul 2020|Moody's Investors Service
In this rating methodology, we explain our general approach to assessing credit risk for local government financing vehicles (LGFVs) in China, including the qualitative and quantitative factors that are likely to affect rating outcomes in this sector.
15 Jun 2020|Moody's Investors Service
Onshore issuance remains strong, with increasing credit divergence; offshore issuance is still volatile
30 Jun 2020|Moody's Investors Service
Zhejiang is an affluent and coastal province in eastern China. LGFVs in Zhejiang will continue to benefit from onshore credit-easing policies in next 12 months. LGFVs owned by prefecture-level cities in Zhejiang province have fairly strong funding capabilities, but credit risk still varies.
21 Oct 2019|Moody's Investors Service
Our regional heat map of China reveals areas of potential risk by looking at RLG, SOE and banking indicators.
22 Jul 2020|Moody's Investors Service
Policy driven economic recovery will continue despite headwinds. Economic leverage will rise as top policy priorities support growth and employment stability. Local governments increasingly rely on transfers from central government and LGFV financing.
Podcast: Earnings will stay flat or decline for most rated Chinese companies this year, increase gradually in 2021
21 Jul 2020|Moody's Investors Service
Lina Choi and Kristen McNamara discuss sluggish revenue and earnings forecasts in light of the coronavirus crisis, with automotives, oil and gas and oilfield services most vulnerable in the current environment. However, credit quality should improve gradually in 2021 as macroeconomic conditions normalize. Read related report >>
29 Jun 2020|Moody's Investors Service
The current restructuring of Peking University Founder Group Corp. (PUFG) is the latest example highlighting the limitations of keepwell deeds. There are significant constraints to the credit support under keepwell deeds because they do not ensure that support from their providers would be forthcoming when the issuers are in distress.
24 Jun 2020|Moody's Investors Service
Coronavirus related drop in nominal GDP drives rapid rise in the leverage ratio. Broad shadow credit increases and bank loan growth accelerates to support economic recovery.
Banks - China Quarterly: Asset quality, capitalization and profitability weaken after the coronavirus outbreak
15 Jun 2020|Moody's Investors Service
Banking system statistics released by the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) suggest that Chinese banks' asset quality, capitalization and profitability weakened in the first quarter of 2020 when disruptions from the coronavirus outbreak peaked.
11 Jun 2020|Moody's Investors Service
Kristen McNamara and Franco Leung discuss the exposure of sectors and rated companies in China to disruptions from the coronavirus pandemic. Just 6% of the 256 companies we rate have high exposure. All of the high-exposure companies have negative outlooks or are under review for downgrade, and more than half have high refinancing risk. Read related report >>
01 Jun 2020|Moody's Investors Service
China's government released its policy focus for 2020, which includes a moderate degree of fiscal support for the economy, accommodative monetary policies and measures to support employment.