China's growth outlook continues to dominate market concerns

    Moody's Investors Service said that China's growth outlook will continue to dominate market concerns in 2015 and is still seen as the largest threat to the regional economy.
  Poll respondents at two Moody's outlook briefings in January identified China's slowing economy as the largest challenge facing Asian sovereigns in 2015, over monetary tightening in the US, resurfacing uncertainties in the euro area, geopolitical risks and the collapse in oil prices.
  Moody's conclusions are contained in its just-released report "Asia Pacific: Moody's 2015 Asia Outlook: The View from Hong Kong and Singapore".
  The report brings together key findings from Moody's annual Asia Pacific Outlook Briefings, held on 27 and 30 January. Polling results were taken from over 170 respondents in Hong Kong and Singapore.
  In both cities participants agreed that economic reform is gaining traction in Asia. But the majority of those surveyed in Hong Kong (51%) had the greatest optimism about the rolling out of Third Plenum policy measures in China, whereas a plurality of voters in Singapore (37%) appeared more enthused about the unfolding reform agenda in India.
  Moody's poll further showed that China's property market is seen as the most likely trigger of a downside growth shock in the Mainland. In total, 39% of respondents in Hong Kong and 45% in Singapore identified this as the greatest threat to China's growth, over risks stemming from the shadow banking sector (30% and 18%), the rising corporate debt burden (15% and 23%) and weaker-than-expected global demand (15% in both cities).
  Rising leverage and refinancing risk are seen as the two most pressing challenges facing Asian corporates in 2015, accounting on average for 28% and 22% of those surveyed, followed by foreign exchange volatility (16%) and China's property sector downturn (14%).
  Moody's poll also showed a broad consensus that China's banking system will face the largest fundamental pressure in 2015, accounting for 48% and 61% of respondents in Hong Kong and Singapore. Around one fifth of those surveyed viewed India and ASEAN banking systems as vulnerable.