Credit quality polarised among China’s local governments

Moody's is the first global credit rating agency to invest in a domestic player.

The potential default of a trust product - the first of a financial instrument in China - would be a necessary step to providing investors with the proper tools for risk assessment

The new guidelines are comprehensive but the need to sustain economic growth may put pressure on enforcement.

Once again, the country's lenders will post good 2011 results, however, 2012 earnings prospects are gloomy.

After Fitch warns that it might cut China’s local-currency debt rating, Andy Rothman, China macro strategist at CLSA, says the country is in a good fiscal position to cope with recession in the global economy.