BBC Chinese recently reported that, at the end of March, Standard and Poor’s (S&P) downgraded its outlook on China’s sovereign bonds from stable to negative. The downgrade reflects concerns over China’s economy in general, as the world’s second largest economy is slowing amid a rebalancing that increasingly brings economic and financial risks. S&P expressed its belief, in an announcement sent to BBC Chinese, that it expects China to see some improvements in the next five years and China’s credit growth will slow. However, S&P also expects the financial leverage situation of the Chinese government and enterprises will worsen. In the meantime, S&P predicts that China’s investment weight in its GDP will remain far above the sustainable 30 to 35 percent.
Source: BBC Chinese, March 31, 2016