Fitch has reaffirmed its A+ rating for China on its strong external finances and said the implications of the removal of presidential term limits remained uncertain while trade tensions with the US pose a downside risk.
The ratings agency said its outlook for China was stable as improved growth over the past year had “enabled the authorities to address financial risks through tighter regulations and slower credit growth”. However, Fitch cautioned that it remained to be seen if this shift would continue to prioritise “stabilising debt levels over using credit-driven stimulus to meet growth targets”.
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