Moody’s: 25 Chinese financial institutions to negative

Moody's Investors Service said it changed the outlooks on 25 Chinese non-insurance financial institutions to negative from stable, following its March 2 decision to change the outlook on the Aa3 rating of China to negative from stable.

The following banks are affected: Agricultural Bank of China Ltd., Bank of China Ltd., Bank of Communications Co., Ltd., Bank of Ningbo Co., Ltd., Bank of Shanghai Co., Ltd., China Citic Bank Corp., Ltd., China Construction Bank Corp., China Everbright Bank Co., Ltd., China Guangfa Bank Co., Ltd., China Merchants Bank Co., Ltd., Industrial and Commercial Bank of China Ltd., Ping An Bank Co., Ltd., Shanghai Pudong Development Bank Co., Ltd., China Development Bank Corp., Export-Import Bank of China and Agricultural Bank of China.

The following non-banks are affected: Citic Securities Co., Ltd., Everbright Securities Co. Ltd., Guotai Junan Securities Co., Ltd., CDB Leasing Co., Ltd., ICBC Financial Leasing Co., Ltd., CCB Financial Leasing Corp. Ltd., China Everbright Ltd., China Huarong Asset Management Co., Ltd., China Cinda Asset Management Co., Ltd. and China Orient Asset Management Corp.

Moody’s said the change in the Chinese sovereign outlook to negative indicates that the central government's capability to support financial institutions on a broad basis could be weaker than previously assessed.

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