Why Moody's Cut China's Rating Outlook

The video discusses the decision to change China's AA3 rating outlook to negative, citing three key drivers: fiscal strength, falling foreign exchange reserves, and challenges in implementing reforms. It highlights the impact of market volatility on policy confidence and the pain associated with China's economic transformation. The video also outlines conditions for stabilizing or downgrading the rating, emphasizing the need for significant reform progress.

What factors could lead to a stabilization of the rating outlook for China?

What would indicate a potential downgrade of China's rating according to the discussed outlook?