Chinese financial leverage to support.........>

CHINA: Chinese financial leverage to support economic growth will continue to

increase but at a slower pace in the period ahead, while the consolidation of

political power during the 19th Communist Party Congress will advance reform and

rebalancing of its economy, Moody's Investor Service said Tuesday. However, it's

unclear whether the centralization of political power in Beijing will cause

economic reforms to speed up or not, the ratings agency said. China is seeing

returns on investment drop, with the rise in the capital-output ratio (ICOR) --

a metric measuring a country's production efficiency, with a higher reading

meaning less efficient investment -- a potential danger sign. Moody's noted it

maintains stable outlook for the Chinese banking sector, including aspects of

the operating environment, asset quality, and government support, but that

liquidity and profitability in the sector are "deteriorating."