Latest report from the US ratings agency
- key issue to watch for HK banks in 2016 is their China-related credit quality
- maintains stable sector and rating outlooks for HK banks notwithstanding their links to mainland China
- China-related NPL ratio will likely rise to about 1.5-2% by end-2016
- commercial real estate lending as relatively more risky as part of it is China-related
All roads and risks lead to/from China.
