Economics
China's Markets Get a Double Dose of Caution From Moody's, MSCI
- Moody’s sees leverage building thanks to growth fixation
- MSCI concerned by trading suspensions, regulator control
Why Moody's Downgraded China to A1
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For all the verbiage from Chinese officials on the need to rein in leverage and open markets to global investors, the nation’s leadership got a double dose of caution on Wednesday.
Moody’s Investors Service unveiled a surprise downgrade of China’s sovereign credit rating, citing concerns about its continued buildup of debt. Earlier, the head of one of the world’s top stock-index compilers suggested China had more work to do to get its onshore stocks into emerging-market gauges. With a June 20 deadline looming, “there’s still a lot of issues to resolve,” MSCI Inc. Chief Executive Officer Henry Fernandez said.