China's financial regulators called for coordinating support to resolve local debt risks, and adjusting policy for real estate loans.
Investors are increasingly sensitive to the idea that some governments may not be able to rescue their debt-raising vehicles.China has so far taken a relatively cautious stance on stimulus despite an overall slowdown in growth and repeatedly disappointing data in the last few months.
"This has widened the gap between the country's prosperous coastal provinces and the poorer inland regions," the analysts said. "Investors are increasingly sensitive to the idea that some governments may not be able to rescue their debt-raising vehicles."It's premature to think China is due for a 'Lehman Moment': Peterson Institute's Nicholas Lardy
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