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<CN Home>Fitch Expects CN Recent Stimulus Measures May Alleviate ST Refinancing Pressure, but Insufficient to Boost CN Property Sector
Recommend 55 Positive 81 Negative 36 |
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China's recent targeted financial measures, such as the People's Bank of China (PBOC)'s recent 25 bps reduction in relending rates and the lowering of minimum down payments for commercial real estate (CRE) from 50% to 30%, confirm a continued policy preference for incremental, targeted easing rather than broad-based credit stimulus, Fitch Ratings said. However, Fitch predicted that banks will continue to prioritize underwriting discipline and stability over aggressive expansion. Re-lending to targeted sectors should help to ease near-term refinancing pressure, particularly among micro and small enterprises (MSEs), and support asset quality. However, there is a risk that support measures may only postpone, rather than resolve, underlying credit issues if their financial profiles do not improve, as these sectors typically include more vulnerable borrowers. AASTOCKS Financial News Website: www.aastocks.com |
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