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Moody's downgrades outlook on China credit rating over debt fears

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By Sébastien RICCI and Oliver HOTHAM

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Ouch. So much for the Rising China narrative.

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The move "reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector", it added.

With so much talk over the property sector, one ponders why it took any ratings service so long to revise their outlook to negative. Combined with the reality that propping up struggling RLGs and SOEs is simply not sustainable looking forward.

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Well there you have it, the rot sets in for China. From standard to "negative" credit rating for China. In other words now is not the time to be investing in China, but to be moving investments out of China and to another nation that has positive credit ratings.

China has had its rise, and now follows that with China's demise. But that is ok. The world can continue to look to America and Western Europe for answers and guidance. Not that any were looking to China for those things anyway.

Xi's China is failing backwards. Good news for the free world.

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The global economy has been freewheeling for some time. State crackdowns on tech and the net in China and the West will remove the primary engine of growth. China is wallowing in unsustainable debt and negative equity. If it could have fixed it, it would have, but Xi's only interest is in his new cultural revolution, replacing Mao with his own image. But the Cultural Revolution was an economic disaster. And having lost all the economic momentum it had courtesy of Covid Zero, sanctions and crackdowns, China's economy is treading water - a pale shadow of what it was pre-pandemic.

That is not good news for the West, as the Western economy benefited from low cost Chinese manufacturing. Now blocking it, sector by sector (including green tech), and having kicked out migrant labour, prices in the West are going to rise and there will be no cash for a green transition. The future of the West will follow the path of Brexit Britain, which is extremely grim, with reducing services, supplies and an undeveloping economy. China and the West, for different reasons, both have a decade of decline ahead of them, engineered by government policies.

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There's a very interesting situation brewing here, related to this article:

https://www.justice.gov/usao-sdny/pr/ho-wan-kwok-aka-miles-guo-arrested-orchestrating-over-1-billion-dollar-fraud-conspiracy

For those who have Chinese connections.... Miles Guo, has had apparently lived a colorful fraudulent past .. at least according to the NY State attorney. However from his followers perspective, he's been telling the truth in advance of it happening... the Chinese Property Market Collapse, the Global Pandemic emanating from China, the infighting between various Family factions within the Chinese Political scene, and a followup Pandemic..... And, the canary in the coal mine... the manipulation of Global Politicians by tons of Chinese CCP Money.... particularly, as they believe, in the case of the US Government Officials from top down - Biden's son being one individual. They also appear to tend towards an alignment with the Republicans - which perhaps is interesting... given the same State attorney going after Trump's business practice's, when embarrassingly in court - the Bankers admitted it was standard practice! (Well known too) - Banks are not stupid money lenders...

One has to wonder...

X-Files Fans should grab a box of popcorn and sit back and watch this with interest.

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About time. The lock downs in China for dubious reasons claimed to be related to COVID were the first sign. Now they have another health issue spreading. Taiwan has closed their border to China again too. No claim that this new health problem is unknown, but it is attacking children, filling Chinese hospitals.

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That is not good news for the West, as the Western economy benefited from low cost Chinese manufacturing. Now blocking it, sector by sector (including green tech), and having kicked out migrant labour, prices in the West are going to rise and there will be no cash for a green transition.

Deflation in the Chinese economy is going to lead to lower prices on Chinese exports, and lower inflation in the west. Pretty much every analyst is saying this.

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