Posted 12/6/2023, 7:04:00 AM
Moody's Outlook Cut Piles Pressure on China to Restore Investor Confidence as Stocks Sink and Growth Prospects Weaken
- Moody's outlook cut adds pressure on China to take more action to prop up sinking stocks and stabilize currency as investor confidence drops
- China has already taken some steps like cutting stamp duty, slowing listings, and getting state funds to buy stocks
- But confidence remains low as economic prospects weaken; costs of insuring China's debt rising
- Analysts say China needs fiscal stimulus and to address local debt, but some tools are having limited impact
- Move draws comparisons to past US downgrade that had little long-term market impact; other agencies still rate China stable