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Due to ongoing real estate and local government debt issues, Moody’s has lowered China’s sovereign debt rating.
China’s Audit Commission announced on July 28 the formation of a new administration to audit all local government debt, expected to begin work in early August.
The debt owed by China’s corporations, in bonds and short-term loans, exceeds the GDP by over 50 percent, and is a credit bomb waiting to explode, experts say.
