CCP Plays the Blame Game Amid China’s Looming Financial Crisis and Failed Market Rescue Efforts

Moody’s downgraded the outlook on China’s A1 debt rating from ’stable‘ to ’negative.’

A woman leaves the Stock Exchange building in Shanghai, China, on Nov. 4, 2020. Hector Retamal/AFP via Getty Images

As China’s economy experiences a significant downturn, the Chinese Communist Party (CCP) is attempting to shift blame by cracking down on various regime officials in its expanding corruption probes.

According to statistics from the CCP’s Central Commission for Discipline Inspection, since November, at least nine financial executives in state-backed banks have been ousted, with over 90 such officials being purged this year.

China’s Dire Economic Situation

On Dec. 8, the Shanghai Stock Exchange closed at 2969 points, marking the second time this year it fell below the crucial 3000-point mark. Concurrently, the Shenzhen Stock Exchange dropped below 10,000 points, and Hong Kong’s stock market saw a 25 percent evaporation of stock prices this year.