This via the folks at Reuters on the latest from Moody's on China banking
- Outlook for China's banking system changed to stable from negative
- Revision reflects expectations that nonperforming loan formation rates will be relatively stable at current levels
- Stable outlook is based on assessment that government's adoption of more coordinated policy measures to curb shadow banking
- Expect government to remain key shareholder of major banks, to be committed to providing strong support in times of stress
- Says on operating environment, conditions are stabilizing, helped by gov policies to support growth and reduce systemic financial risks
- China's banking says that asset risks will moderate over next 12-18 months, while capitalization will stay stable
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This should be a positive for China and China proxies. Like the AUD needs any more help today. Of course there's always the ratings agency hate to cast doubt on their assessment. :-D
