Why Moody's Downgraded China to A1

The video discusses China's economic challenges over the past 14 months, focusing on the downgrade of its sovereign rating due to slower growth and rising leverage. It highlights the dependency on policy stimulus and the risks posed by high debt levels, particularly in state-owned enterprises. The government is implementing structural reforms to address these issues, but the effectiveness remains uncertain. The video also covers China's strategy to open its capital account, balancing potential risks and benefits.

What were the main reasons for the downgrade of China's rating to a one?

What impact does the high level of debt have on China's government?

How does the structure of China's economy contribute to its leverage issues?

In what ways are the government's structural reforms expected to affect leverage in the future?

What are the potential risks and benefits of opening China's capital account?