China's credit rating was recently downgraded by Standard & Poor's (S&P) from AA- to A+ because of worries over the rapid growth of the country's debt.
Not surprisingly, China refuted concerns, with the country's Ministry of Finance (MOF) saying that "the downgrade is a result of [S&P's] long-standing mode of thinking, and misreading of the Chinese economy based on developed countries' experience". Fidelity's Nicholls: Why I am excited about 'new China' What S&P ignored, the MOF said, is the country's distinctive financing structure, the wealth-creating effect of government spending and its support for growth, as well as sound development fundamentals and growth potential. But we must assess ourselves the two key components of cr...
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