The ratings agency told Bloomberg that any extension of government debt was likely to spark a reconsideration of China’s A+ rating. But while Fitch does not expect such a scenario to occur, the ratings agency also expects the government to provide little debt support to the flailing property sector.
Fears of a debt meltdown in China’s property sector have been a key weight on sentiment in recent sessions, especially asLosses in property stocks also weighed heavily on the Hang Seng, pulling it down to a nine-month low. The CSI 300 and Shanghai Composite were both sitting at two-month lows.
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