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| HSI1 | 22,671.86 | -405.05 | 342.10B |
| HSCEI1 | 7,460.84 | -147.54 | 100.47B |
| Back Zoom + Zoom - Block Traded | |
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Moody's Revises Outlook on CN Banking System to 'Stable'
2026-06-25 13:29:40 Moody's revised the outlook on China's banking system from "Negative" to "Stable". Persistent policy support and steady economic growth underpinned a stable operating environment for banks. Moody's noted that asset risks of banks will remain elevated, plagued by unseasoned risks from financing rapidly evolving industries and rising asset risks in banks' retail portfolio. Profitability is expected to stabilize as banks demonstrate greater discipline in lowering deposit costs, keeping the contraction in net interest margins (NIMs) within a relatively narrow range. Credit costs may stay high due to risks from newly formed non-performing loans (NPLs), while investment income could remain volatile if market interest rates rise. Capital levels are expected to remain broadly stable on slower loan growth. Supported by monetary and fiscal policies, funding and liquidity will remain adequate. In light of the stable outlook on China's sovereign rating, which indicates steady support capacity, the government support to banks has been changed to stable from deteriorating. ~ AASTOCKS Financial News Website: www.aastocks.com | |