S&P playing catch-up with downgrade

S&P is the third of the three major ratings agencies to downgrade China and today’s decision tells us nothing we didn’t already know. There has actually been some progress recently in tackling credit risks, particularly in reining in the activities of the “shadow” banking sector. Broad credit growth has slowed. But it continues to rise relative to GDP so the overall trend remains deeply unhealthy.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.