Local debt

In response to growing concerns about local government debt as a weak point in its economy, China released an audit on Monday show that local governments were $1.65 trillion in the red by the end of last year.

The central government's first-ever audit of local government debt is meant to kick off further plans to reduce risks posed by bad loans and other policies at the local level. According to the audit, the debt level is equal to 27 percent of China's overall economy, yet it's smaller than many expected. Chinese experts said the number will soothe fears rather than inflame them.

"There have been concerns about a possible hard landing for the Chinese economy, as well as systemic financial risks, based on the overflow of local government debts. The disclosure of the size of local government debts will ease these concerns," Li Yang of the Chinese Academy of Social Sciences told the China Daily newspaper. "There are local-level risks, but these are not as serious as some people thought."