Fitch downgrades China’s currency rating
Fitch Ratings is downgrading China’s local currency sovereign rating from AA- negative outlook to A+ stable, due to growing concerns over the growth of shadow credit and the risk it poses to the banking sector, as well as the lack of regulatory action.
The rating agency has affirmed Chinas foreign currency rating at A+ with a stable outlook.
While Chinas explicit government finances are strong, the broader economy has a debt problem, according to Andrew Colquhoun, head of Asia Pacific sovereign ratings at Fitch.
Credit, including shadow banking activity, rose to around
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