Moody's Chung Discusses China Credit Market, Defaults

The video discusses the Chinese government's efforts to alleviate a potential credit crunch through selective policy measures, focusing on fundamentally sound companies. It highlights the stable economic growth forecasted by Moody's, despite challenges from the US-China dispute. The video also examines the role of shadow banking in the private sector and the widening credit spread, indicating China's tolerance for defaults as long as they don't threaten market stability.

What role does shadow banking play in the financing of private sector companies?

How has the Chinese government's approach to defaults changed over time?

What indicators suggest the level of tolerance for defaults in the Chinese market?