Fitch: China, Property, External Risks on Bank Investors' Minds

(The following statement was released by the rating agency)Link to Fitch Ratings' Report: What Investors Want to Know - Asia-Pacific Developed-Market Bankshttps://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=874868HONG KONG/SYDNEY, December 23 (Fitch) China remains at the forefront of US investors' minds when they consider risks associated with Asia-Pacific (APAC) developed-market (DM) banks. This was a common theme discussed recently in US investor meetings with senior analysts in Fitch's APAC Banks team.A faster-than-expected slowdown in China weighed heavily on the minds of investors. From a DM bank perspective, there were concerns about both direct and indirect risks - with direct risks relating to credit exposure (highest in Hong Kong) and trade exposure (Hong Kong, Singapore, Korea, Japan, Australia/New Zealand and Taiwan). Meanwhile, secondary impacts could stem from exposure to other markets - typically emerging markets - affected by China's slowdown.For Australian banks, investors' concerns focused mostly on the domestic property market and commodities exposure (as was the case in New Zealand) and any implications stemming from the 2014 Financial Services Inquiry. For Japan, questions focused mainly on the impact of Abenomics and the banks' international expansion (mostly in APAC). The latter was also a theme for Singaporean banks. The focus in Korea was the outlook for growth - given the high leverage in the household sector and in parts of the corporate sector, as well as an aging population. There was also strong interest in how regulation pertaining to resolution schemes and total loss-absorbing capacity (TLAC) would play out in APAC - in light of the the tendency for authorities in most markets to be supportive of large banks, and seven global systemically important banks being domiciled in the region. Fitch's report titled "What Investors Want to Know - Asia-Pacific Developed-Market Banks" provides a summary of our views about the above and other issues. The report is available at www.fitchratings.com or by clicking on the links in this media release.Contact:Jonathan CornishManaging Director, Financial Institutions +852 2263 9901Fitch (Hong Kong) Limited19/F Man Yee Building 68 Des Voeux Road CentralHong KongTim Roche Senior Director, Financial Institutions+61 2 8256 0310Fitch Australia Pty LtdLevel 15, 77 King StreetSydney NSW 2000AustraliaMedia Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com.Additional information is available on www.fitchratings.comALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.