Moody's: Chinese Govt support for banks remains strong, but will become more selective

The US-based Moody’s Investors Service is out with its latest report on China’s banking sector, with the key highlights found below.

Chinese government support for banks remains strong, but will become more selective.

It expects Chinese regulators to continue to reduce shadow banking, interbank activity as part of policy goal.

It expects Chinese authorities to become increasingly selective in providing support especially where banks don’t pose significant systemic risk.