China Challenges Fitch's Rating Downgrade

China's finance ministry has expressed strong disapproval and non-recognition of Fitch's decision to downgrade the country's long-term foreign currency rating. The ministry claims the downgrade is biased and doesn't accurately reflect China's economic situation, amid concerns over economic shifts and public finance risks.

Amid heightened economic uncertainty, China's finance ministry has voiced stern opposition to Fitch Ratings' decision to lower the country's long-term foreign currency rating from 'A+' to 'A'.

The ministry described the move as 'biased' and lacking a comprehensive reflection of the current economic state within China.

This downgrade follows Fitch's earlier adjustment in April 2024, which revised China's sovereign credit rating outlook to negative, highlighting potential risks related to public finances as China transitions to new growth models.

(With inputs from agencies.)