Following the down reduction in China's real estate rating in September, the international rating agency Moody's Moody's on Tuesday (December 5) has lowered China's credit rating outlook.The Ministry of Finance of China expressed disappointment and emphasized that the macroeconomic continued recovery of this year, and the steady advancement of high -quality development. China is still an important engine for the steady growth of the world economy.
Moody's on Tuesday issued a report to maintain China's sovereign credit rating to A1, but the rating outlook was lowered from "stability" to "negative".Moody's explanation shows that more evidence shows that the Chinese government must provide more financial support to local and state -owned enterprises, which brings downward risks to China's fiscal and economic conditions.
At the time of Moody's downward view, the scale of China's local government's debt issuance continued to rise.According to data from the Ministry of Finance of China, In the first 10 months of this year , 8.47 trillion yuan of local government bonds nationwide (RMB RMB, Tong Tong, S $ 1.59 trillion), hit a record high.
Moody's claim that the downward -down outlook also reflects the increase in China's continued low medium -term economic growth and the increase in the risk of reduced scale in the real estate industry.
In response to Moody's reports, the Chinese Ministry of Finance said "disappointment", and emphasized that China's macroeconomic restoration this year is resumed, and fiscal revenue has maintained growth. Moody's concerns about China's economic growth prospects are "unnecessary."
Moody's 2017 China debt rating was lowered from AA3 to A1, Downs it from stability to negative .However, the other two of the world's three major rating agencies -S & P Global and Fitch rated China's long -term debt to A+this year, respectively, and the prospects were stable.
On the same day released by Moody's Report, the three major indexes of China's A -shares opened lower and low, of which the Shanghai Securities Comprehensive Index (Shanghai Index) fell 1.67%, and the close was 2872.30 points.This is 3000 points after falling below 3,000 points on October 20th.
In addition, the north -direction of funds that are regarded as a foreign investment in the Chinese market's interest in the Chinese market is 7.521 billion yuan on Tuesday.After the northern capital of funds showed signs of the return of foreign capital last week, this week was transferred to the net sales range again.
Zhao Xijun, a professor at the School of Finance and Finance of Renmin University of China, said in an interview with Lianhe Morning Post that changes in the stock market were affected by multiple factors such as the macroeconomic, capital level, and investor expectations, which could not fully reflect the recovery of China's economic recovery.
Zhao Xijun believes that although data such as GDP (GDP) reflect the restoration of China's economy, the market's expectations for economic recovery are higher, which causes the stock market to perform average.
For the outflow of funds, Zhao Xijun analyzed, one of the important reasons is that China -US spreads continue to exist.With the decline of the RMB interest rate, the US dollar interest rate rose to higher than the RMB interest rate, which had a great impact on the flow of funds.
