Beijing | In another blow to China’s economy, the credit ratings agency Moody’s said on Tuesday (Wednesday AEDT) that it had issued a negative outlook for the Chinese government’s financial health.

Moody’s expressed concern at the potential cost to the national government of bailing out debt-burdened regional and local governments and state-owned businesses. Moody’s, which previously viewed China’s finances as stable, warned that the country’s economy is settling into slower growth while its enormous property sector has begun to shrink.