Moody's Investors Service cut China's outlook to 'negative' from 'stable' on the country's government credit ratings on Wednesday. The agency said that the downward revision was driven by the weak fiscal metrics, a decline in reserve buffers and the uncertainty about the government' capacity to implement reforms.

Moody's affirmed China's Aa3 rating.

The agency noted that the country's climbed to 40.6% of GDP at the end of 2015 from 32.5% in 2012, and expected to rise to 43.0% by 2017.

China's foreign exchange reserves dropped to $3.2 trillion in January 2016, down by $762 billion from June 2014.