Core Viewpoint - The downgrade of the US sovereign credit rating by Moody's is reshaping the operational logic of global financial markets, indicating that the maintenance of global monetary hegemony is no longer reliant on credit rating metrics but rather on the ability to construct a more inclusive global financial infrastructure [1] Group 1 - The strategic value of Chinese assets is being re-evaluated in light of the recent credit rating downgrade [1] - There is an expectation that the status of the US dollar will further weaken, prompting funds to seek alternative options [1] - Chinese yuan assets, supported by solid fundamentals, are anticipated to become a new choice for global funds alongside euro, yen, and pound assets [1]

Group 1 - The recent surge in US Treasury yields has raised concerns about investor sell-off risks, following Moody's downgrade of the US sovereign credit rating from AAA to AA1 due to increasing government debt and interest payment ratios [1] - All three major international credit rating agencies have now downgraded the US sovereign credit rating, with Fitch and Standard & Poor's having made similar adjustments previously [1] - The global monetary system, while still centered around the US dollar, is facing challenges as the internationalization of currencies like the renminbi and euro progresses, indicating a shift towards a more diversified monetary system [1] Group 2 - The dominance of the US dollar has led to issues such as "weaponization" of currency and the Triffin dilemma, prompting a rebalancing of the international monetary system [2] - There is an increasing exploration of digital currencies for cross-border trade and investment services, which may enhance the role of Special Drawing Rights (SDR) by the International Monetary Fund [2] - Despite a decline in trust towards dollar assets, the dollar's position as a primary currency remains difficult to challenge, although a diversified and multipolar global monetary system is anticipated [2]