Moody’s says that China’s local governments have borrowed $2.1t mainly from banks, $540b higher than the results of an official audit.   The Financial Times (FT) did not question the estimate but rather the process by which analysts arrived at their estimate.  Nevertheless the FT opined that the Moody’s conclusions may well prove to be accurate.  Only time will tell and, given the huge amount of lending in China over the past few years, perhaps it is sensible to err on the side of caution.    Source: Financial Times