Economics
Morgan Stanley Is Bullish on China Banks After Stress Test
- Policy makers have exposed and managed risks proactively
- Chinese banks have ‘ample’ cover for a rise in bad loans
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China’s broad push to corral risks has put its financial system in the position to withstand even an economic slowdown to about half the pace of the current expansion.
That’s the conclusion of Morgan Stanley after the U.S. bank conducted its own stress tests on China’s vast banking industry, which is struggling with a surge in bad debt amid the slowest economic growth in three decades.