Fitch on China - High levels of indebtedness weighs negatively on banks

In its latest report published via Reuters on Wednesday, the US ratings agency, Fitch, paints a bleak picture of the Chinese economy in wake of three major concerns - overcapacity, indebtedness, over-leverage.

Key Points:

Overcapacity weighs on China bank operating environment

Over-capacity and over-leverage remain significant challenges for Chinese steel industry

Expects steel sector to continue relying on commercial paper refinancing

High levels of indebtedness in industrial sectors facing overcapacity will weighs negatively on operating environment for Chinese banks