China's state-owned Zhuhai Huafa Group has been caught in trust default and credit downgrade risks, facing a crucial test of its credit rating integrity. According to Bloomberg, despite rumors of two trust product defaults and its bonds plunging to distressed levels, Zhuhai Huafa Group has retained its top-tier AAA rating from major domestic rating agencies. Meanwhile, Fitch Ratings maintains its low investment-grade rating of BBB, with both rating agencies placing the company on Rating Watch Negative. This incident is seen as a real-world test of the Chinese central bank's crackdown on inflated credit ratings in the $5.6 trillion corporate bond market.