From the Financial Times(gated), an article about China local authority debt. It quotes a senior Chinese auditor as refusing to sign off on bond sales by local governments.
“We audited some local government bond issues and found them very dangerous, so we pulled out,” said Mr Zhang, who is also vice-chairman of China’s accounting association. “Most don’t have strong debt servicing abilities. Things could become very serious.”
- This comes as last week ratingds agency Fitch cut China’s sovereign debt rating
- And yesterday Moody’s, while reaffirming China’s rating cut the outlook to stable from positive
Concern’s such as these about China are not a positive for AUD.
