Moody’s on Thursday cut China’s property sector outlook to negative from stable, citing economic growth challenges, which the rating’s agency said will dampen sales despite government support.
Shadow banking: Unpacking the risks for China
- Shadow banking — a term coined in the U.S. in 2007 — refers to financial services offered outside the formal banking system, which is highly regulated.
- China’s property sector, an estimated one-fourth of the economy, lies at the intersection of shadow banking, local government finances and household assets.
- Today, Beijing’s problem is it needs to offset a crackdown on shadow banking and real estate developer debt with other kinds of economic support.