...Internationalisation Fuelled by Policies: The internationalisation of Chinese banks is strongly influenced by the authorities' efforts to send capital abroad and to expand China's international influence. Fitch Ratings believes rapid expansion in overseas projects may pressure bank leverage and that asset allocation decisions could be compromised by policy imperatives, given links to China's current strategic and political priorities. That said, bank internationalisation is expected to underpin the state's propensity to support banks. Such expectation underlies Fitch's Support Ratings and IDRs of `A+' for China's policy banks and `A' for the larger state commercial banks. Ongoing government support may include additional capital support as the banking system leverage is already high, and more capital would be needed to keep pace with their international growth aspirations. A Capital-Export Strategy: `One Belt, One Road' (OBOR) is the latest iteration of China's long-term effort to send...
