Analysts at Moody's Investors Service said that they interpret the central bank's action as "having been the result of a conscious decision" to curb credit growth.Moody's added that a prolonged credit crunch could threaten Chinese companies, "especially those in the private sector with weak credit quality, because it heightens the risk that banks will scale back lending to those companies." Moody's says that China's central government finances remain strong, but that rapid credit growth and liabilities at the local level pose a threat to growth.
Asia Stocks Fall After China Aims At Shadow Loans
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