Why S&P's First China Downgrade Since 1999 Is Good News for Bulls
- Government seen supporting markets on eve of party congress
- The yuan strengthened after a Moody’s downgrade in May
S&P Downgrades China to A+ From AA-
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S&P Global Ratings may have just done China’s investors a favor.
With the credit assessor cutting the nation’s rating less than a month before the start of a twice-a-decade Communist Party congress, Chinese officials have even more motivation to keep financial markets stable. Policy makers sent directives instructing the nation’s financial regulators to be ready to take steps to ensure market stability after the downgrade, people familiar with the matter said.