Fitch lowers its sovereign debt on China’s costs and tariffs

Be informed with free updates

Simply register Chinese economy Myft Digest – Delivered directly to your box.

The rating agency Fitch wasted China’s sovereign debt, the concerns about the export of higher tariffs, asked Beijing to bias.

On Thursday, Fitch said that China’s Foreign Currency rating to China’s long-term foreign exchange rating, US President Donald Trump’s forecasts on the announcement of the additional “mutual” Wednesday tariffs 34 percent in Chinese goods.

Fitch said that the movement reflects the expectations of his action Chinese The external demand would increase the costs sharply to support economic growth and reverse talatar pressures among the growing tariffs.

“This support will be in a high level of financial shortages, along with the erosion of the income base, probably,” he said.

The Ministry of Finance of China canceled what he said was a “biased” discount.

“China’s economy is a stable basis, many advantages, strong and great potential,” said the ministry said “long-term favorable” conditions and “total trend of high quality economic development” said.

China is not a heavy issuer of foreign exchange debt, but most bonds are in the reninth. One $ 2 billion issue in Saudi Arabia In November last year, the Great Investor Requirement and Pekin prepared the waves due to cheap borrowing as US dollars.

On Wednesday, the Ministry of Finance, RMB6BN (823 million) in London, RMB6BN (823 million), one of his sponsors, is almost seven times more.

There was a fitch Cut China’s outlook on credit rating In April last year, being adverse to stable, trying to move to new growth models, citing the owe of Beijing.

Agency on Thursday, despite the impact of the new tariffs on the influence of new Trump tariffs, uncertainty about the impact of new tariffs of the outlook, because it was reported to be “a probable rating for economic growth and financial dimensions.”

Beijing believes that there should be more public debt as part of efforts to increase Chinese economy.

“China will continue to implement more active financial policy and moderate free money policy,” he said.

Moody’s Investors Service China has negativeized credit worldview In December 2023, the growing risks of increased risks, discounts, the growing risks of the crisis in the average economic growth and the real estate sector.

Danske Bank’s Chinese economist, Allan Von Mehren, China’s bond market, which is unable to affect the cutting of the Fitch, said that local players are dominated by local players.

“China has very high savings in need, and most of it enters bonds through banks and pension funds,” he said. “China’s People’s Bank also increases politics by reducing reserve rates and increases liquidity, so it will be enough to receive bonds to finance the debt.”