Moody's Staff In China Advised To Work From Home Amid Fear Of Government Inspections
Portfolio Pulse from Piero Cingari
Moody's Investors Service has instructed its China-based staff to work from home and advised Hong Kong analysts to avoid travel to mainland China. This follows Moody's decision to downgrade China's sovereign credit rating outlook from neutral to negative. The move is seen as a precaution against potential government inspections. The iShares China Large-Cap ETF (FXI) has dropped 3.8% this week, coinciding with Moody's rating action.
December 07, 2023 | 5:02 pm
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The iShares China Large-Cap ETF (FXI) has fallen 3.8% this week, potentially influenced by Moody's downgrade of China's credit outlook.
The drop in FXI's value is likely a direct response to Moody's downgrade of China's credit outlook, as the ETF tracks large-cap Chinese stocks which are sensitive to changes in the country's economic and credit conditions. The precautionary measures taken by Moody's staff in China could also contribute to investor concerns about the regulatory environment and its impact on the market.
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