Credit Suisse believes a local government debt default in China is possible in mid-2014, hitting the mainland economy and the property market, The Standard reported Friday. “Currently there is noise within the Chinese central government giving a lesson to the local governments by allowing some defaults,” Tao Dong, the chief Asia economist at Credit Suisse, was quoted as saying. He said it may happen in 2014-2015. The possible local debt default next year may lead to market panic, and property market adjustment may take place after 18 months, Tao said.
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