What me worry? Fitch downgrades China and the markets yawn
Yesterday Fitch cut China’s long-term local currency credit rating from AA- to A+. Because of the uncontrolled growth of China’s shadow banking sector, Fitch said, total credit may have reached 198% of GDP by the end of 2012, up from 125% in 2008. Despite the downgrade, the iShares FTSE China 25 ETF (FXI) is up 0.99% as of 12:30 p.m. New York time today.