Moody’s praises China’s growth resilience; China and Hong Kong sovereign ratings may rise

Moody’s has placed the Chinese government and Hong Kong SAR government bond ratings on review for possible upgrade, with likely knock-on upgrades for the three policy banks, China Mobile, CNOOC and others.

Why the possible upgrade?

Growth resilience through the financial crisis. Moody’s cited China’s demonstrated growth resilience during the global financial crisis, effective stimulus measures and timely exit strategies, plus a banking system that hasn’t damaged government finances.

Many MPF funds hold Chinese and Hong Kong bonds and equities, so an upgrade would be good news for fund performance. To compare bond fund performance, visit MPF fund comparison.