Moody's Investor Service has lowered the outlook on China from stable to negative

Moody's Investors Service has lowered the outlook on China's credit rating from stable to negative, citing a weakening of fiscal metrics and a continuing fall in foreign exchange reserves. "Without credible and efficient reforms, China's GDP growth would slow more markedly as a high debt burden dampens business investment," the ratings agency added. Moody's current Aa3 rating on China is still seven notches above junk, so even if the agency were to follow up on its warning, investors wouldn't have to suddenly start selling the country's bonds. The Shanghai Composite shrugged off the decision along with other Asian shares, climbing 4.3%, after yesterday's record run on Wall Street.