Financial News quoted People's Bank of China (PBOC) chief economist Ma Jun, noting that the ratings agencies were too pessimistic in downgrading their outlooks.
Key Quotes:
Moody's and S&P were too pessimistic in downgrading their outlooks for China and the ratings of some local companies
Recent data shows economic recovery: property investment has started increasing and industrial profit growth turned positive for the first two months of the year and the March PMI rebounded
In the real economy will help reduce financial risks and changes – including tax reductions and "zombie" company reorganization – will help companies deleverage
The effect of the downgrades won't be big as the decreasing of funding of China companies with foreign currencies was half a year ago
China is relaxed about downgrades in the country's outlook by rating agencies, Xinhua reports
(Market News Provided by FXstreet)