Moody's says that the fiscal and monetary easing measures announced by China's (A1 stable) authorities on 23 July signal a significant change in policy stance as its economy faces both domestic and external pressures.

While Moody's expects the immediate credit implications will be limited -- with only slightly higher levels of government debt -- the new measures suggest that the trade-offs between deleveraging and growth are becoming more stark.

Moody's conclusions are included in its just-released report "Government of China: Easing poses limited fiscal risk, but suggests policy trade-offs are starting to bite".

The new measures include fiscal and financial policies announced by China's State Council to support domestic demand and develop the real economy, and an injection of liquidity by the People's Bank of China.

Along with a more gradual shift in monetary stance over the last two months, Moody's says these measures represent a significant change towards more accommodative policy.

The measures come as a financing clampdown domestically and trade restrictive measures externally are weighing on activity growth in China.