Rating agency S&P affirmed on Thursday (7th) that China's sovereign credit rating remains A+ with a Stable outlook.

China's economy will return to self-sustaining growth in the coming years, reaching an annual level of over 4%, paving the way for a gradual reduction in the annual increase of general government net debt, the rating agency said. This will allow the government to progressively reduce policy support for the economy in the coming years.

Related NewsOvernight Shibor Dips 0.1 bp to 1.314%
S&P expected that China's fiscal performance will recover from the large fiscal deficits of recent years from 2026. The drag from the real estate sector and local government fiscal weakness should further alleviate. Despite uncertainties in the international trade environment, stronger domestic demand should allow for a gradual reduction in policy support, with real GDP growth not falling below 4% annually over the next three to four years.