China Economy-Economic Growth With Positive Rating - 11-10-2009

http://www.chinastockdigestblog.com Moody's Investors Service has boosted China's sovereign ratings outlook to positive from stable. Todays upgrade for China was the first by any major ratings agency since the global financial crisis hit late last year.
Moodys says credit fundamentals in China are likely to continue to improve as the country emerges from the global recession. Thats an important note to China critics who had warned of a credit bubble there. Moodys said it would remain on the lookout for bubbles in the future.
The globally respected investors service gave China high marks for its handling of the economic crisis, saying, The Chinese authorities are successfully steering the economy through the turbulence of the global financial crisis and recession, and furthermore, they seem likely to remain vigilant to protect systemic stability from future threats and challenges. High praise indeed.
China's recovery is driving a recovery in Hong Kong (where the China Stock Digest has significant investments) as well as the rest of Asia. Moodys lifted Hong Kong's credit outlook to positive from stable, while keeping the territory's credit rating at Aa2. Hong Kong's high per capita income, institutional strength, separate currency and international reserves, and different legal system all justify a rating higher than that of China according to Moodys
Chinas banks are also in strong condition, despite worries that this years flood of government mandated lending could weaken their capital base. But Moody's raised its outlook for seven Chinese banks to positive from stable. The seven banks are Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China, China Development Bank, Export-Import Bank of China and Agricultural Development Bank of China. Agricultural Bank had often been regarded as the weakest of Chinas banks. No longer, according to Moodys.
Investors cheered as Chinas ADR Index rose another three percent on the news, after gaining almost 9% in the past five trading days.
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