Comments from Fitch Ratings, reported via Reuters:
- The 50bp cut to the reserve requirement ratio ( RRR ) for Chinese banks on Tuesday, together with record loan growth in January, could point to an increasing likelihood that the authorities are shifting policy to enable more credit-fueled growth
- Next week's National People's Congress meeting should provide further information on the direction of Chinese economic policy and structural reform
- Fitch maintains that a return to sustained rapid lending growth by Chinese banks would be credit negative, with leverage in the economy already high
- Expects China's credit growth will continue slowing in 2016 to 13%
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.