Moody’s: Stable outlook for China’s financial sector on monetary policy support

Dhwani Mehta FXStreet

Moody’s Investors Service offers a stable outlook for China’s financial institution sector, courtesy of the country’s continued monetary policy support.

Additional takeaways

“Uneven adjustment risks among financial institutions in China and a prolonged downturn in the property sector stress could pose risks.”

“Low rates will pressure the investment returns of asset managers and insurers in China.”

This comes after Monday’s Reserve Requirement Ratio (RRR) cut by the PBOC.

Meanwhile, China's central bank announced a cut on its relending facility rates by 25 basis points (bps) to support the rural sector and small firms, effective from Dec. 7, Securities Times reported on Tuesday.

Market reaction

USD/CNY is trading at 6.3713, down 0.06% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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