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.
  • SUMMARY
  • REPORTS

  • COMPILATIONS
    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.

    SECTOR COMMENT
    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.

    RATING METHODOLOGY
    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.
    Foundations of credit in China
    SECTOR IN-DEPTH
    15 Jun 2020|Moody's Investors Service
    Onshore issuance remains strong, with increasing credit divergence; offshore issuance is still volatile

    SECTOR IN-DEPTH
    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.
    SECTOR IN-DEPTH
    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.

    SECTOR IN-DEPTH
    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.

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    PODCAST
    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 >>

    SECTOR IN-DEPTH
    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.

    SECTOR IN-DEPTH
    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.

    SECTOR IN-DEPTH
    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.

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    PODCAST
    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 >>

    SECTOR IN-DEPTH
    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.

    KEY CONTACTS
    Lillian Li
    VP, Senior Credit Officer
    Lillian.Li@moodys.com