“It will bring international standards into the rating process of domestic bonds and will encourage foreign investors to look into Chinese corporates in a more serious fashion,” said Manu George, a bond fund manager at Schroders. “In the longer term, it potentially opens up onshore Chinese corporates to index inclusion.”
China Economy Falters as IMF Cuts Global Growth Forecast
It was reported last week that China’s economy grew at a rate of 6.6 percent last year based on numbers coming out of China’s government. The figure was in line with analyst expectations, but represented its slowest pace of growth in almost 30 years.
Last week, fears of a global economic slowdown were stoked on Monday when the International Monetary Fund trimmed its growth expectations to 3.5 percent from 3.7 percent. Global growth outlook for 2020 was also cut to 3.6 percent from 3.7 percent.
The slower growth expectations in China once again came to the forefront.
“Reports last week showed that China’s economy grew at the slowest pace in nearly three decades in 2018,” said Bruce Bittles, chief investment strategist at Baird. “In order for the market to continue on an upward path, investors will need to feel more positive that trade worries are on the decline and global growth concerns are abating.”
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