Moody's: China's SOE reform to continue at gradual pace

Moody's Investors Service says that China's (Aa3 negative) reform of state-owned enterprises (SOEs) will continue at a gradual pace, given the need to balance the central governments' multiple commitments

"The authorities have issued implementation directives at a faster pace recently, but we expect them to remain cautious in adopting reforms," says Lillian Li, a Moody's Vice President and Senior Analyst. "This is because progress on implementation of SOE reform is subject to the central government's other reform objectives, such as maintaining a moderately high level of GDP growth and the stability of the social and financial systems."