Wednesday, February 24, 2016

Loose Coin Market Helps the International Finance Market

Moody's deputy director general manager / director of Greater China credit analysis Ivan Chung said, the Chinese government continued to promote the reform and gradual liberalization of domestic bond markets, as well as under the current low interest rate environment, businesses, financial institutions and local governments domestic bond issuance market is expected to sustain the growth momentum.

Ivan Chung in Moody's published a new "Focus RMB bonds" (Renminbi Bonds Monitor) report on the occasion made the comment. The quarterly report is designed to provide domestic and overseas christian louboutin sneakers Chinese renminbi bond market, the latest trends, and describes Moody's view of the market trends.

January 2016 new RMB loans reached the highest monthly level since 2012. Even taking into account China's new loans to peak seasonal pattern usually appears in January, the new scale still higher than in January 2012 - higher than the same period in 2015, more than 1 trillion yuan.

In view of the weak against the dollar this year, liquidity and foreign investors interested in the overseas market RMB assets more uncertain. Therefore christian louboutin wedding shoes, offshore renminbi bond market growth will remain weak, foreign issuers may be the main market.

The report also analyzes why in the loose credit environment overcapacity industries (such as steel, coal, shipbuilding and cement) weak financial position of the issuer's credit is still much pressure. Total domestic issuers over 3000, and the credit quality is uneven, Moody's expects the domestic market to erupt more events of default christian louboutin wedges.

Ivan Chung said last overcapacity industry restructuring will also lead to more credit event has occurred, such as asset sales and acquisitions, such events could have a significant impact on the issuer's credit status.

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