Moody’s Investors Service, released its latest review report on the Chinese banking system, maintaining a stable outlook.

"The operating environment for Chinese banks is deteriorating as the escalating trade tensions with the United States will add further pressure to the country's economic growth", Moody's said.

Nevertheless, Moody's maintained its stable outlook for the Chinese banking system on stable liquidity and adequate capitalization.

"Despite the ongoing trade tensions and slowing economic growth, accommodative government policies will support the asset quality of Chinese banks over the next 12 to 18 months while capital and liquidity also remain adequate. However, profitability will weaken on declining asset yields due to looser monetary policy and interest rate reform and continued high credit costs to reflect high corporate leverage and a slowing economy", Moody's said.