Outlook Revisions On Four China Banks Reflect Slower Debt And Property Price Growth

Slowing expansions in property prices and private debt are positives for China's banking industry. These trends could improve the overall credit environment for banks, if a track record of clear policy execution is demonstrated. That in turn could lead us to strengthen our China "BICRA" group, which determines the starting point for all Chinese bank ratings. We revised the outlooks on three China-based banks positive from stable, and to stable from negative for a fourth bank. We affirmed the issuer credit ratings on all four entities. We also affirmed the issuer credit rating on China Merchants Bank, and the outlook remains on positive. The positive outlooks reflect a one-in-three likelihood that we will raise our ratings on these banks over

...August 9, 2021 - Slowing expansions in property prices and private debt are positives for China's banking industry. - These trends could improve the overall credit environment for banks, if a track record of clear policy execution is demonstrated. - That in turn could lead us to strengthen our China "BICRA" group, which determines the starting point for all Chinese bank ratings. - We revised the outlooks on three China-based banks positive from stable, and to stable from negative for a fourth bank. We affirmed the issuer credit ratings on all four entities. We also affirmed the issuer credit rating on China Merchants Bank, and the outlook remains on positive. - The positive outlooks reflect a one-in-three likelihood that we will raise our ratings on these banks over the next two years. HONG KONG (S&P Global Ratings) Aug. 9, 2021--S&P Global Ratings today took the following actions: - Revised the outlook to positive from stable on Bank of Communications Co. Ltd. and affirmed the ratings...

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