Moody's Investors Service

In the wake of the coronavirus pandemic, many governments globally are looking at infrastructure investment as a key driver of economic growth in coming years. While China’s economy has recovered relatively well compared to other nations, the government is once again looking at infrastructure investment as a pillar for economic growth.

Despite tighter regulations and liquidity, China’s non-bank financial institutions are back on an upward trajectory bolstered by opportunities to be found in the new economy, according to experts on a recent roundtable in Hong Kong, hosted by Moody’s Investors Service and FinanceAsia.

China’s property development sector has set the dial to stability in the coming year but Moody’s believes tight regulatory controls on home buyers, restrictions on credit and weakening sentiment will all affect developers’ financial profiles.

Despite stabilising growth, a number of challenges cast a shadow over the prospects for credit worldwide. Rahul Ghosh of Moody's Investors Service discusses the outlook for 2017.

Kaven Tsang and Franco Leung of Moody’s examine the outlook for China’s property sector during the next year.

Laura Acres of Moody’s discusses covenant quality in the face of eroding corporate liquidity.

Tom Byrne, head of Moody’s Asian sovereign risk group, discusses the economic and policy challenges that China’s next leaders will face, and how they affect China’s credit profile.

Refinancing risk in China’s property sector has risen due to weak fundamentals and continued tight credit, with 11 of the 29 developers rated by Moody’s now facing liquidity pressure.