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Downgrading Hong Kong’s credit rating questionable and unjustified

A gist of the blog:

Considering the sound economic fundamentals, robust financial regulatory regime, resilient banking sector and strong fiscal position that Hong Kong has, Moody's decision to downgrade the credit rating of Hong Kong is questionable. One of the major rationales cited by Moody's is our increasingly close economic relationship with the Mainland. China has been the key source of growth for the global economy in recent years, contributing more than one-third of world's economic growth. In the post-global financial crisis era, economies around the world are all hoping to work closer with China, the second-largest economy in the world. Hong Kong's growing connection with the Mainland should not been seen as a negative factor impacting our economic development.

May 28, 2017