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

  • SECTOR IN-DEPTH
    28 Sep 2020|Moody's Investors Service
    The Chinese government's stimulus policies will support infrastructure projects and economic growth, amid the global coronavirus pandemic. 

    SECTOR IN-DEPTH
    29 Sep 2020|Moody's Investors Service
    Banks have maintained a strong flow of longer term credit to corporates, likely reflecting the policy intent of providing support to business and investment. 

    PODCAST
    28 Sep 2020|Moody's Investors Service
    Jerome Cheng and Gracie Zhou from the structured finance team discuss China’s newly opened asset-backed commercial paper market, highlighting some key differences with other countries. Read related report >>
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    SECTOR IN-DEPTH
    03 Sep 2020|Moody's Investors Service
    Revenue growth will recover in 2021, driven by new orders for domestic construction projects. We have revised up our 2020 aggregate revenue growth projection for rated state-owned construction companies - to 8% from 2% previously - and expect growth of around 12% in 2021.

    PODCAST
    02 Sep 2020|Moody's Investors Service
    Yubin Fu and Gene Fang of the Subsovereign Team discuss how some economically stronger Chinese provinces will record larger declines in growth, which should temporarily narrow regional economic disparities in the near term. Read related report >>
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    Foundations of credit in China
    ISSUER COMMENT
    17 Sep 2020|Moody's Investors Service
     Rains have been more intense than usual for the time of year, and have caused more damage than on average, partly offset by the authorities' focus on impact mitigation.
    Credit Opinion
    17 Sep 2020|Moody's Investors Service
    The credit profile of China is supported by very high economic and fiscal strength, and low external risk. Large savings and pervasive government support for the economy foster high debt affordability through low financing cost.

    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.

    SECTOR IN-DEPTH
    17 Sep 2020|Moody's Investors Service
    Onshore issuance is slowing but will exceed record 2019 level; offshore issuance will pick up in next six months with refinancing.
    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.

    OUTLOOK
    31 Aug 2020|Moody's Investors Service
    We changed outlook to stable from negative. The stable outlook comes with the acknowledgment that economic recovery is tenuous and property sales growth, while increasing from the start of the year, will remain modest during the outlook period.

    SECTOR IN-DEPTH
    24 Aug 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 continued to weaken in the second quarter of 2020 in the wake of disruptions caused by the coronavirus pandemic.

    SECTOR IN-DEPTH
    17 Aug 2020|Moody's Investors Service
    Widening use of the new loan prime rate (LPR) to price bank loans will expose banks' lending to further easing by the PBOC, a credit negative. 

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