Moody's to raise China's rating to Aa3 Outlook

Moody's Investors Service November 11 reported that the Chinese government's debt rating from "A1" to "AA3" and maintain a positive outlook on the rating. The ratings included the Chinese government's foreign-currency bond rating, the cap on China's foreign currency bank deposits and the cap on foreign-currency bonds.　　China's short-term foreign currency rating is still "P-1", unaffected by the rating hike.　　The study showed that the ratings were raised for the following reasons: First, after the global financial crisis, the Chinese economy showed a strong resilience, and China is expected to continue strong growth and macroeconomic stability in the medium term. Moody's said the Chinese government quickly adopted a decisive and effective stimulus policy and is now withdrawing.　　And the central government's financial credit fundamentals have not been damaged, and the government is likely to control and effectively manage the problems that may be brought about by the massive expansion of credit in 2009. Moody's stressed that China's balance-of-payments situation was exceptionally strong, providing a strong cushion against global financial turmoil, and that China's capital controls would also help curb capital inflows. The dispute between China and the US over trade and exchange rate mechanisms is expected to be effectively resolved.