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
    11 Nov 2019|Moody's Investors Service
    The interbank market has stabilized, but regional banks are subject to a declining flow of market funds, which could bring adjustment risks to banks with a high reliance on such funds.

    SECTOR IN-DEPTH
    30 Oct 2019|Moody's Investors Service
    Inventory levels will rise because of a slowdown in contracted sales growth but will remain low compared with their recent peaks since March 2016.

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    SECTOR IN-DEPTH
    21 Oct 2019|Moody's Investors Service
    China's regional and local governments play a critical role in mitigating and potentially transmitting economic and financial risks within China’s highly interconnected institutional framework, economy and financial system. Although we consider systemic risk in China to be low overall, our heat-map-based analysis of mainland China’s 31 provinces points to higher potential risks in the west and northeast of the country.
    PODCAST
    21 Oct 2019|Moody's Investors Service
    Jennifer Wong and Edward Demetry from Moody’s Sub-Sovereign Group discuss how China's regional and local governments play a critical role in mitigating and potentially transmitting economic and financial risks within China’s highly interconnected institutional framework, economy and financial system. ​​
    Bank – China
    17 Sep 2019|Moody's Investors Service
    Michael Taylor, Lillian Li and Nicholas Zhu of the Financial Institutions team discuss recent actions from Chinese authorities to restructure several regional banks, and what that means for China’s systemic risk and our assumptions on government support for Chinese banks. ​​​
    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.
    Trade – Asia
    17 Sep 2019|Moody's Investors Service
    Michael Taylor and George Xu of the Global Credit team discuss the impact of the ongoing US-China trade dispute and China’s economic slowdown on business conditions throughout the rest of Asia. ​​
    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.

    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.

    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.

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