The outlook for the Chinese banking system will remain stable for the next 12 to 18 months according to a new report from ratings agency Moody’s.
According to the report Beijing will provide strong support to key banks as part of efforts to maintain market confidence as well as broader economic stability.
Moody’s also sees a shift towards higher value-added sectors and greater balance between deleveraging and support for economic growth.
It forecasts GDP growth of between 6 to 6.5% for the next several year, abetting a steady rise in lending by Chinese banks.
“The situation will result in an operating environment over the next 12 – 18 months that is broadly supportive of bank credit quality and stable asset quality,” said Yulia Wan, Moody’s analyst.