China's strong banking sector fears no slander as performance stable

With deliberate intentions to short China's banking sector, some foreign media outlets and financial institutions made unreasonable assumptions recently without factual basis on the nation's major commercial lenders.

Their comments mainly pointed to so-called issues like risk exposure of local bonds in China's banking sector being too large, and said it is difficult to achieve good capital adequacy ratios, provisional coverage ratios and dividend payout levels simultaneously. Goldman Sachs even downgraded ratings for some banking shares, which raised concerns over the soundness of China's financial system, as some of the lenders concerned play important roles in the country.

Such irresponsible comments and moves, which, as we see things, only function to damage prospects and trigger sharp volatility in banking shares, also exacerbated cross-border capital outflows and renminbi depreciation pressure. We feel the comments have no solid foundation.