Fitch's Asia-Pacific Sector Outlook for 2019

The video discusses the tightening of financial conditions and the outlook for companies in the APAC region, highlighting the increase in negative corporate outlooks and expected downgrades. It examines the impact of the US-China trade war and China's economic slowdown on financial results, particularly in manufacturing. The challenges faced by Chinese homebuilders, including liquidity issues and rising debt costs, are explored. The video concludes with an expectation of increased defaults in China as the government reduces its intervention in the sector.

What is the expected trend for company ratings in 2019 according to the first section?

• Equal number of upgrades and downgrades

• No change in ratings

• More downgrades than upgrades

• More upgrades than downgrades

How are the US-China trade tensions expected to affect Chinese companies?

• Anecdotal evidence of sales decline

• Immediate and severe financial losses

• No impact on financial results

• Increased profits due to new trade deals

What is a significant concern for speculative-grade Chinese homebuilders?

• Decreasing demand for homes

• Increased competition from foreign builders

• Rising coupon rates and tighter liquidity

• Government subsidies

What percentage of funding requirements for speculative-grade Chinese companies is based on short-term debt?

• 75%

• 50%

• 25%

• 100%

What is the expected trend for defaults in China in 2019?

• No change in default rates

• Increase in defaults

• Defaults will be eliminated

• Decrease in defaults