The Party's Over

Foreign investors pull out of China as its weakening economy deepens its debt hangover

Moody’s, the credit rating agency, this week lowered its outlook for China’s creditworthiness to “negative,” from “stable,” citing the rising likelihood that Beijing would need to provide financial support to heavily indebted local and city governments. Wall Street was way ahead of it.

Global investors have sold more than $31 billion worth of China’s sto…