Moody’s Investors Service underscores the key threats to China’s shadow banking sector, as the authorities continue to lower systemic risks.
Key quotes
“Shadow banking assets as a share of nominal GDP fell in Q1 2021 to the lowest in eight years.”
“Economy-wide leverage to stabilize as authorities aim for a credit growth rate that matches nominal GDP growth.”
“Moody's measure of the economy-wide leverage ratio declined in the first quarter of 2021.”
“The ratio is set to decline and stabilize in 2021 amid the steady economic recovery and a less accommodative credit environment, as the Chinese government targets a rate of credit growth that matches nominal GDP growth.”
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