The rating agency said that the policy highlighted the risk of aging across emerging markets in Asia.
"And although China's new policy allowing couples to have up to three children could support fertility, it is unlikely to dramatically change the national birthrate, meaning that aging will remain a credit-negative constraint", Moody's said in a statement.
(Reporting by Kanishka Singh in Bengaluru; Editing by Christian Schmollinger)

Shipping containers next to gantry cranes at the Yangshan Deepwater Port in Shanghai, China, on Monday, Jan, 11, 2021. U.S. President Donald Trump famously tweeted that "trade wars are good, and easy to win" in 2018 as he began to impose tariffs on about $360 billion of imports from China. Turns out he was wrong on both counts. Photographer: Qilai Shen/Bloomberg