Comment on Moody's cuts China credit rating over rising debt

Moody's cuts China credit rating over rising debt

BEIJING (AP) — The Moody's ratings agency on Monday cut China's credit rating due to surging debt, prompting a protest by Beijing and highlighting challenges faced by communist leaders as they overhaul a slowing economy. Private sector analysts say it could drag on the economy or threaten the health of the state-owned banking industry. The government is trying to make the economy more productive by giving market forces a bigger role and "supply side reform," or shrinking bloated industries such as steel and cement in which supply exceeds demand, which has depressed prices and led to financial losses. The finance ministry noted the growth rate ticked up to 6.9 percent in the quarter ending in March and said tax revenue rose 11.8 percent in the first four months of the year. The importance the authorities attach to maintaining robust growth will result in sustained policy stimulus, given the growing structural impediments to achieving current growth targets.

 

Comment On This Story

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More Business News