China: Increasing credit differentiation between regions and sectors
While some common trends will shape credit for most Chinese issuers, differences in revenue growth, scope to deleverage, exposure to tight liquidity or policy changes, point to differentiation between regions and sectors.
  • SUMMARY
  • REPORTS

  • SECTOR IN-DEPTH
    16 Sep 2019|Moody's Investors Service
    The negative effects will spread across Asia this year and in 2020, although there will be some positives for the region as a result of US trade diversion away from China.

    SECTOR IN-DEPTH
    10 Sep 2019|Moody's Investors Service
    Regional banks in China have grown in importance as the country's financial system has become more market based. But these banks are showing increased signs of financial pressure.
    SECTOR IN-DEPTH
    09 Sep 2019|Moody's Investors Service
    The recent regulatory actions to take over Baoshang Bank and to restructure shareholders of Bank of Jinzhou and Hengfeng Bank show government resolve in containing contagion risk.
    Chinese Property
    29 Aug 2019|Moody's Investors Service
    Franco Leung and Kaven Tsang of the Corporates team discuss the effects of a hypothetical renminbi depreciation scenario on rated high-yield Chinese property developers
    SECTOR IN-DEPTH
    29 Aug 2019|Moody's Investors Service
    Revenue/adjusted debt and EBIT/interest decline only slightly for most of the 49 high-yield developers in this report in a hypothetical scenario in which RMB depreciates to 8.0 versus USD.
    Chinese local government financing vehicles
    Announcement
    27 Aug 2019|Moody's Investors Service
    Understanding the debt and finances of China’s regional and local governments and state-owned enterprises is key to shedding light on contingent liabilities and potential risk spillovers. In a new ongoing report series, Moody’s explores a variety of related themes.
    SECTOR IN-DEPTH
    26 Aug 2019|Moody's Investors Service
    This new quarterly publication provides a detailed overview of Chinese local government financing vehicle (LGFV) bond issuance volumes, trends and characteristics. Bonds issued by LGFVs are a growing asset class. Offshore LGFV issuance in 2019 is on track to exceed last year’s record $22 billion and onshore issuance to exceed the historical high of RMB2.6 trillion in 2016. 

    ISSUER COMMENT
    16 Aug 2019|Moody's Investors Service
    The ongoing protests will have a dampening effect on GDP, leading us to revise our outlook for Hong Kong's growth rate to 0.5% in 2019 and 1.0% in 2020, despite the just-announced fiscal stimulus. However, Hong Kong's high levels of wealth, its highly competitive economy and substantial fiscal reserves can offset the drop in growth.
    Infrastructure companies - China
    14 Aug 2019|Moody's Investors Service
    Ada Li and Ning Loh of the Infrastructure Finance team discuss their expectations for a slowdown in overseas infrastructure investments by Chinese companies.
    SECTOR IN-DEPTH
    13 Aug 2019|Moody's Investors Service
    Chinese infrastructure companies will be more selective in making overseas investments during the coming two to three years, and state-owned companies will shift their focus back to China.​

    04 Jul 2019|Moody's Investors Service
    China’s economy-wide leverage is likely to continue rising, with pockets of financial stress developing periodically for some local banks or State-Owned Enterprises (SOEs). However, the Chinese government has the financial means and policymaking ability to contain the rise in leverage, mobilise resources to support stressed public-sector entities and maintain financial stability.
    05 Jul 2019|Moody's Investors Service
    Moody's Investors Service has today affirmed Hong Kong's Aa2 long-term issuer and senior unsecured ratings and maintained the stable outlook on the ratings.

    SECTOR IN-DEPTH
    26 Jun 2019|Moody's Investors Service
    China Railway Group Ltd, China Railway Construction Corporation Corp Ltd and China Communications Construction Co Ltd will receive the largest revenue boosts from the increased investment because infrastructure accounts more than half of their revenues.

    SECTOR IN-DEPTH
    20 Jun 2019|Moody's Investors Service
    The easing of regulatory pressure on shadow banking, combined with increased bank lending, is leading to an increase in overall leverage. Credit risk is becoming increasingly differentiated.
    SECTOR IN-DEPTH
    11 Jun 2019|Moody's Investors Service
    New policies designed to improve the structural incentives for banks to lend to privately owned enterprises (POEs) would help shape a more market-based form of financing for POEs over time.

    KEY CONTACTS
    Lillian Li
    VP, Senior Analyst
    Lillian.Li@moodys.com