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nevertheless,inthelongerterm,theimpactonchinesefirmscouldbemorenegativeifstockmarketweaknessesaretopersistsoastodiscouragepaniesfromraisingtheirequityfunding,itsaid.
shouldsecuritiespaniesrunintotrouble,thepotentialforcontingentliabilitiestocrystallizeonthecountry'ssovereignbncesheetwouldbemanageable,theagencysaid.
unintotrouble,thepotentialforcontingentliabilitiestocrystallizeonthecountry'ssovereignbncesheetwouldbemanageable,theagencysaid.
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mercialbanks'directexposuretothedomesticequitymarketislow,andthestockmarketroutwillnothaveasignificantimpactoncreditquality,theagencysaid.
however,itexpectedthegovernment'sencouragementforbankstolendtolistedpaniesinordertopurchasetheirownshareswillriskincreasingthesector'sexposuretomarketvtilityandtoborrowerswithrisingfinancialleverageovertime.
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"thedirectimpactfromheightenedvtilityinchina'sequitymarketonfinancialsectoroutputgrowthwillbelimited,whiletheindirecteffectsofmarketuncertaintyonconsumerspending,employmentandcorporateinvestmentswillbesimrlymuted,"saysmichaeltaylor,amoody'smanagingdirectorandchiefcreditofficerforasiapacific.
mercialbanks'directexposuretothedomesticequitymarketislow,andthestockmarketroutwillnothaveasignificantimpactoncreditquality,theagencysaid.
withamorevtilestockmarket,chinesepanieswillreducetheiresstoequitycapital,butthisountsforonlyafractionofcorporatefunding,thereportsaid.
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