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Moody's: Chinese life insurers' shift to riskier asset allocations amid low interest rates, a credit negative

Hong Kong, February 13, 2017-- Moody's Investors Service says that the shift by Chinese life insurers towards riskier asset allocations to support their business growth and investment returns amid the persistent low interest rate environment is credit negative. "The shifting asset allocation is pressuring four of the key rating factors-- asset quality, capital adequacy, profitability and liquidity-- that are central to our rating assessment for life insurers," says Kelvin Kwok, a...
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Moody's Investors Service
Moody's Investors Service

Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis. Moody's commitment and expertise contributes to transparent and integrated financial markets, protecting the integrity of credit. Our ratings and analysis track debt covering more than:

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    76,000 structured finance obligations



Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Such independent credit ratings and research also contribute to efficiencies in fixed-income markets and other obligations, such as insurance policies and derivative transactions, by providing credible and independent assessments of credit risk.



Moody’s default studies validate our predictive ratings. Our published research and investor briefings draw thousands of attendees each year and keep investors current with the rationale underlying our credit opinions. 

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