China Banking & Financial Services
発行: Fitch Solutions, Inc.
ページ情報: 英文 66 Pages
Key View: Over the short term, the Covid-19 outbreak will result in slower economic growth, posing some headwinds towards growth across several sectors. Banking liquidity will be impacted by deteriorating asset quality, with smaller regional banks left vulnerable as they have been encouraged to lend to riskier, smaller businesses. However, a collapse of the sector is unlikely as we expect Beijing to quickly interfere at signs of strain. The Chinese authorities will also likely implement further preventive policies to improve banking capitalisation, especially for rural banks. Meanwhile, the continued opening up of the financial services sector such as the removal of foreign ownership limits on various types of financial services will encourage foreign participation over the medium term. That said, we note downside risks to our view as deteriorating relations between China and the West which could see the West implement regulations to make business operations in China more difficult.