Signalling that the Chinese government may not be able to sustain high growth and manage its growing debts at the same time, Moody’s Investors Service cut its rating on the country's debt for the first time since 1989. The rating was reduced by Moody's from Aa3 to A1.

While the effect of the downgrade may be limited - much of China's debt is held by domestic investors, and therefore more stable in sentiment - the downgrade hit Chinese stocks and the yuan. Moody's changed its outlook from stable to negative, saying that the country's debt will continue to rise and is impacting the government's finances.