BEIJING (Reuters) – Global ratings agency Fitch revised outlooks for China’s five major state banks and China Merchants Bank to stable from negative on Tuesday, despite the downgrade of China’s sovereign rating last week.
The Chinese government still retains financial flexibility to support the sector including the six banks, even during higher deficits and rising debt, Fitch said.
(Reporting by Ziyi Tang and Ryan Woo; Editing by Andrew Cawthorne)
