In the annals of China's long preordained rise to global economic supremacy, Wednesday's credit downgrade is likely to be overlooked, but may, when some future scribbler is painstakingly thumbing through the dusty archives of a long forgotten tale of hubris, be regarded with more circumspection. The Perils of Public ScrutinyAccordingly the credit downgrade was described as "illogical" by Mei Xinyu, a researcher at the Ministry of Commerce, which "overestimated the difficulties faced by the Chinese economy." Of course, China are not the first country to object to credit ratings downgrades. And the last time Moody's downgraded China was during an otherwise unremarkable June in 1989 (hint: it wasn't unremarkable). For the last couple of years, China has itself repeatedly acknowledged a need to rein in leverage across the economy.

Source: Forbes May 26, 2017 03:55 UTC