- Chinese equities -- not immune to an Asian sell-off coming after a North Korean hydrogen bomb test threat -- were also broadly lower Friday after Standard & Poor's eyed the country's debt and downgraded its sovereign credit rating.
- The move wasn't unexpected, though, and Moody's had made a similar downgrade in May (and Fitch four years ago) -- and Chinese markets have done fine since May.
- Shanghai is 0.5% lower, as is Shenzhen. Hang Seng is 0.8% lower as S&P also downgraded its rating on Hong Kong.
- The agency said it was acting since credit growth was still too fast, despite the country's efforts to cut risk.
- “We’ve now come to the conclusion that while we do expect some deleveraging in the next few years, this deleveraging is likely to be much more gradual than we thought could have been the case early this year," says S&P's Kim Eng Tan.
- ETFs: FXI, ASHR, YINN, CAF, EWH, KWEB, YANG, GXC, FXP, PGJ, MCHI, HAO, CQQQ, TAO, CHIX, PEK, CHIQ, CHN, TDF, KBA, QQQC, ASHS, XPP, CNXT, CHAU, YXI, CN, FCA, YAO, CHAD, GCH, CXSE, JFC, CHII, CHIE, ECNS, AFTY, KFYP, CHIM, EWHS, FCHI, CWEB, FHK, ASHX, CNYA, HAHA, CNHX, XINA, OBOR
- Now read: The 'Safer' Dividend Russell 3000 Dogs Put Financials Top Gainer And Real Estate Top Yielder For July 2018
Original article