Ratings agency Moody's on Chinese banks. Moody's comments have wider applicability:
- We have changed the outlook for Chinese banks to negative, reflecting their weaker operating environment and asset risks over the coming year amid slower GDP growth, the property market correction and pandemic disruptions.
- The risk that China's growth slowdown may be structural rather than cyclical is rising.
- Banks' credit demand will remain weak and lending will likely pick up only slightly, despite the government's monetary easing.
I posted this earlier on likely policy changes incoming from the People's Bank of China: