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2025-08-01 10:31:46
[Fitch: Upgrades outlook for most Chinese mid-sized banks to "positive" as risk profile improves] Rating agency Fitch expects the operating environment of Chinese mid-sized banks to be generally stable, with a gradually declining risk appetite. If their risk appetite continues to decline, it will help reduce their inherent credit risk and strengthen capital buffers. These factors, combined with stricter non-performing loan recognition standards and proactive NPL disposal measures, are expected to enhance the resilience of medium-sized banks throughout the economic cycle. Fitch has adjusted the risk profile and asset quality rating outlook of most rated Chinese mid-sized banks from "stable" to "positive." Fitch points out that moderate and more efficient credit growth should also help maintain the stability of the banking system's leverage ratio in the medium to long term, supporting the bbb-/stable operating environment rating of Chinese banks.
