April 18, 2017 / 12:53 AM / 7 months ago

Fitch: Key Questions on China from European-based Investors

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: What Investors Want to Know: Fitch on China European Investor Tour here HONG KONG/SHANGHAI/SINGAPORE, April 17 (Fitch) Fitch Ratings-Hong Kong/Singapore/Shanghai-17 April 2017: In March 2017, Fitch Ratings' China Sovereign, Financial Institutions, and Corporate analysts travelled across Europe, meeting with investors to offer Fitch's view of the credit issues facing China. The most prominent questions investors asked include: - Has there been a shift in China's economic policy stance? - What is your outlook for the economy this year? - What is your medium-term outlook for the economy? Will the authorities have difficulty achieving their growth objectives? - What are your expectations for capital outflows and the yuan? - What could result in a revision of the sovereign's ratings? - What is your estimate of the size of asset-quality problems in China? Can the government bail out the whole banking system if needed? - Will the substitution of effectively non-performing LGFV loans with lower-yielding bonds and the debt-for-equity swap programme help banks to resolve their bad debt? - How sensitive are banks and corporates to a tightening of monetary policy? - If a financial crisis were to occur, how would it be triggered? - Is the strong property market boom going to continue in 2017? - Will there be more corporate defaults in 2017? - How does the proposed DES programme work? - How successful have government's capacity-reduction initiatives been, and will they continue to support commodity prices in 2017? For more information, the Special Report titled "What Investors Want to Know: Fitch on China European Investor Tour" is available on the Fitch Ratings website at www.fitchratings.com or by clicking on the link in this press release. Contact: Andrew Fennell Director Sovereigns +852 2263 9925 Fitch (Hong Kong) Limited 19/F Man Yee Building 68 Des Voeux Road Central Hong Kong Jonathan Cornish Managing Director Financial Institutions +852 2263 9901 Andrew Steel Managing Director Corporate +65 6796 7231 Ying Wang Senior Director Corporate +86 21 5097 3010 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. Additional information is available on www.fitchratings.com ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. 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