China Debt Squeeze Has Moody's Awaiting First Local Default

Bloomberg on the Chinese credit market:

Signs the authorities may be taking a less sympathetic view of the sector has ratings companies flagging the possibility that 2017 could see the first ever default by a local financing vehicle.

A Ministry of Finance circular dated April 26 barred municipal governments from giving ownership of public assets or land to their local financing companies and prohibited the use of revenue from land sales to help the vehicles repay their debt.

China Debt Squeeze Has Moody's Awaiting First Local Default