Moody’s: China’s erosion of credit quality is likely over the medium term

The US ratings agency, Moody’s Investors Service, issued warnings in its latest review published on China, Reuters reports.

Key Headlines:

China's authorities have the tools to avert a financial crisis, but erosion of credit quality is likely over the medium term

Overarching role of the Chinese state mitigates the risk of a financial crisis

China could face several adverse consequences even if financial liberalization is stalled and a systemic crisis is avoided