Moody's upgrades China ratings | SCMP

Rating agency Moody's Investors Service yesterday gave a thumbs-up on the mainland economy with positive upgrades to the ratings of both the government and the country's big banks.

Its action was in sharp contrast to a recent decision by rival agency Standard & Poor's as well as an Organisation for Economic Co-operation and Development (OECD) report this week which warned that foot-dragging over reform threatened to throw the brakes on China's economic growth.

Citing rapid growth in foreign exchange reserves, positive prospects for exports and hence the current account, and a WTO-led boost to investment, Moody's changed its outlook on the A3-rated long-term foreign currency bonds of the government from stable to positive. more