China local government debt has risks for central govt: Moody’s

KUALA LUMPUR: China’s local government debt and contingent liabilities are now much higher than what National Audit Office (NAO) had reported in its first audit on such debt in June 2011, Moody's Investors Service says.

It said on Monday the NAO report, released on Dec 30, 2013, was a credit negative development though whether the new figures reflected more thorough accounting procedures or an actual sharp rise in debt, or both.