In early March, Moody’s Investors Service released a report, China’s sovereign credit rating to maintain “Aa3”, but the rating outlook from “stable” to “negative.” In this regard, the official said, Moody’s sovereign credit rating of our country remains unchanged, the outlook has been changed to “negative”, but in the current world economic situation is very complex, on China’s economic and financial problems expressed some concerns . But these problems do not actually constitute sufficient grounds outlook downgrade, the rating of the company’s overall situation needs further understanding and eliminate “information asymmetry.”
For all sectors of common concern to local government debts, the official said, the next step, the Ministry of Finance will continue to urge local governments in strict accordance with the Budget Law and the relevant requirements of the State Council system, strengthening local government debt management, the government and the market to clarify the border, to prevent fiscal and financial risks . One is to strengthen local government debt limit constraints. According to the draft budget for 2016, local government debt in general and special debt balance quotas total about 17.2 trillion yuan of local government debt ratio is expected to remain below 100% of the risk level of the cordon, the overall risk is controllable. Second is to strengthen local government debt risk management, improve local government debt risk assessment and early warning mechanisms, and strengthen the supervision of local government financing behavior. Third, local government financing platform to accelerate market transformation and financing platform for the company to promote the financing entity class transition to self-restraint, self-development of the market players, in accordance with market principles by its financing and debt, eliminate implicit government guarantee, RISKS internalize its borrowing debt not included in government debt, the government perform the function within the scope of investment.
Speaking of China’s economic growth, reform, market stability policy, the official said, from the market perspective, market stability can create a favorable external environment for economic growth and reform. By 2015, the face of stock market volatility, the Chinese government adopted a series of measures to stabilize the market, effectively avoid systemic risk. Face risks and challenges in the financial sector, to take the necessary measures to prevent, to hold systematic, regional baseline risk does not occur, is to create a stable environment for the development of reform and economic growth, it does not mean the need to postpone reforms. We can say that in a complex world economic situation, maintain financial market stability is a necessary condition to achieve economic growth targets and to advance structural reforms.