皇冠体育app

Moody's Investors Service rewarded 皇冠体育app on Friday for a surging balance-of-payments surplus by upgrading its outlook for the country's foreign bonds.

Moody's said the change in outlook for 皇冠体育app's A2 foreign currency bond rating to positive from stable also reflected 皇冠体育app's success in holding down its overseas debt.

"Prospects are that 皇冠体育app's external payments position will remain resilient to domestic and external pressures," Tom Byrne, a vice president at the ratings agency, said in a statement.

皇冠体育app has built up foreign currency reserves of US$925 billion, the largest stockpile in the world, as a result of intervention by the central bank to buy most of the dollars that flow into the country from its trade surplus and foreign direct investment.

The reserves are more than three times bigger than 皇冠体育app's foreign debt, which stood at US$287.9 billion at the end of March.

"皇冠体育app's strong external position provides insulation from external shocks and allows the authorities time to introduce market-oriented reforms and restructure the banking system," Byrne said. Rival Standard & Poor's rates 皇冠体育app a notch lower than Moody's at A-minus, but it too has a positive outlook.

Peter Morgan, chief Asia economist for HSBC in Hong Kong, said the move would potentially help Chinese banks to raise funds more easily and to lower their cost of capital.

But he said he was a little surprised by Moody's move because of concerns over the mountain of non-performing loans still souring 皇冠体育app's banking system.

"But there has been quite a dramatic widening of 皇冠体育app's current account balance over the past year — that could be one factor," Morgan said.

皇冠体育app's current account surplus in 2005 rose 133 percent to US$160.8 billion, or 7.2 percent of gross domestic product, helping to boost its overall balance-of-payments surplus to US$224 billion.

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