As the authorities try to reduce systemic risks, Moody’s Investors Service highlights the biggest concerns to China’s shadow banking sector.
“Shadow banking assets as a percentage of nominal GDP plummeted to its lowest level in eight years in Q1 2021.”
“As authorities strive for a credit growth rate that matches nominal GDP growth, the economy’s leverage will stabilize.”
“In the first quarter of 2021, Moody’s gauge of the economy-wide leverage ratio fell.”
“Amid a gradual economic recovery and a less permissive credit climate, the ratio is expected to fall and stabilize in 2021, as the Chinese government aims for credit growth to meet nominal GDP growth.”
S&P: China’s ratings upheld at ‘A+/A-1’; outlook stable – SCMP S&P: China’s ratings affirmed at ‘A+/A-1′; outlook stable
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