Beijing / Bloomberg
Chinese Finance Minister Lou Jiwei downplayed a decision by Moodyâ€™s Investors Service Inc. to cut his countryâ€™s credit-rating outlook, saying leaders â€œdidnâ€™t care that muchâ€ because the move had little market impact.
The March 2 downgrade didnâ€™t lead to irrational market behavior or aggressive short-selling, Lou said at the China Development Forum, a gathering of world business leaders and Chinese government officials. He noted that the offshore yuan even rose afterwards.
â€œInternationally there was no ensuing action, for example shorting on China, so we didnâ€™t care that much about it,â€ Lou said. He was responding to a question from Jin Liqun, the president of the China-backed Asian Infrastructure Investment Bank, who asked whether leaders would communicate with ratings agencies after the downgrade.
Lou told the forum that Moodyâ€™s was concerned about local-government debt in China and whether the country could carry out promised structural reforms, including getting rid of overcapacity.