Moody's negative outlook on China's credit rating intensifies concerns about the economy's growth prospects and weakening investor confidence, leading to a decline in Chinese stocks and increased costs of insuring the sovereign debt. The downgrade has prompted measures to stabilize the stock market and address structural weaknesses in the economy. China is also grappling with a hidden debt problem of USD 7-11 trillion in the banking system, leading to a looming financial crisis and prompting urgent measures to address the issue.

China's Credit Rating Woes