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Founder & Head of Research, Fortress Hill Advisors

Alex Ng

Founder & Head of Research

Fortress Hill Advisors

Founded in Hong Kong in 2019, Fortress Hill Advisor seeks to provide premium economic and financial researches.

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Cross Asset Strategy

<ul>
<li>China’s 19 major domestic systemically important banks hold up well under most solvency and liquidity tests, though some capital shortfalls appear with a moderate or severe NPL sensitivity shock scenario.  </li>
<li>The safety net would likely be capital injections including from central government as occurred with the largest 4 banks in 1997-04 or takeover and mergers.</li>
<li>However, small and mid-sized banks shortfall of capital in the more severe sensitivity would test China authorities crisis management and response capacity.</li>
</ul>


China’s 19 major domestic systemically important banks hold up well under most solvency and liquidity tests, though some capital shortfalls appear with a moderate or severe NPL sensitivity shock scenario.  
The safety net would likely be capital injections including from central government as occurred with the largest 4 banks in 1997-04 or takeover and mergers.
However, small and mid-sized banks shortfall of capital in the more severe sensitivity would test China authorities crisis management and response capacity.


China Banking Stress Tests