China Growth Slowdown to Be Factored Into Bank Earnings in 2H, Fitch Says

The transcript discusses the economic slowdown in China, particularly in the second half of the year, and its impact on bank earnings. It highlights the effects of targeted stimulus measures on the deleveraging campaign and the challenges banks face in extending credit due to capital constraints. The discussion also covers the difficulties small and medium banks encounter, such as liquidity and asset quality issues, exacerbated by reliance on interbank funding and exposure to wealth management products.

What factors are contributing to the expected slowdown in the second half of the economy?

How do targeted stimulus measures in China potentially affect the deleveraging campaign?

What are the main challenges faced by small and medium banks in China?

In what ways has the crackdown on shadow banking impacted smaller banks?

What are the implications of weaker balance sheets for smaller banks in China?