China Reality Check Event: Handicapping China's Credit Risks
In late May, Moody’s Investors Service downgraded China’s long-term local currency and foreign currency issuer ratings, the first time it has done so since 1989. This step is consistent with growing concerns about the country’s rising debt levels as well as the expansion of new kinds of financial instruments such as wealth management products. Nevertheless, there are a wide range of views about China’s economic trajectory and whether its credit risks are manageable, are a major drag on economic growth or may lead to a financial crisis. Our roundtable participants will discuss these issues as well as the implications for the global economy.