China has made progress in curbing risks in financial sector - Moody’s

Beijing. Jul 3. Silkroadnews - According to the global rating agency Moody’s, China continued to make progress in curbing risks in the financial sector in Q1 2018, Xinhua writes.
“We are noticing slowing asset growth and stabilizing asset quality, as well as accelerating loan growth as banks are returning to conventional lending and [moving] away from shadow banking activities,” the agency quoted saying by Nicolas Zhu, vice president and senior analyst at Moody’s, in his report.
“Looking ahead, we expect the regulators will maintain a cautious approach in order to alleviate any potential disruption to the real economy from the clampdown on shadow banking and interbank activities,” Zhu said.
The total assets of China’s banking institutions reached 256 trillion yuan ($38.7 trillion) at the end of Q1, which is a 7.4% increase year-on-year, though slower than the 14.3% growth a year earlier, the report reads.
As Moody’s report notes, the quality of assets has stabilized in accordance with the steady expansion of macroeconomics, creditors’ profitability improved, and liquidity remained balanced among the banks.