Chinese govt support for banks to be more selective, Moody's says

Chinese authorities have stepped up their restructuring of regional banks in recent months, including the takeover of Baoshang Bank on May 24, 2019.

KUALA LUMPUR: Recent measures by the Chinese government (A1 stable) for a number of troubled banks indicate that financial system stability remains the overriding priority, although support will become increasingly differentiated, Moody's Investors Service says.

"We have in recent months seen rapid government response to episodes of bank stress, as regulators aim to alleviate market fear of contagion risk amid ongoing shadow banking and interbank activity," according to Nicholas Zhu, a Moody's vice president and senior credit officer.