Fitch: A negative sector outlook on Chinese banks

In its latest review report on the Chinese banking sector, the US-based Fitch Ratings says that it has a negative sector outlook on the Chinese banks.

Additional Findings:

“Expects net profit growth for Chinese banks to be in single digits in the medium term.

Believes explicit intervention from the Chinese authorities over bank lending may impact governance and risk management practice.

Says Chinese state banks may receive more guidance from authorities, whether explicit or implicit, in their lending in general.

Chinese banks may not be appropriately compensated for additional risks that they are taking on.”