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Chinese President Xi Jinping (3rd R) and Vice Premier Liu Yandong (R) meet with the advisory board entrepreneurs from Tsinghua School of Economics and Management at the Diaoyutai State Guesthouse in Beijing October 23, 2013.
Chinese President Xi Jinping (3rd R) and Vice Premier Liu Yandong (R) meet with the advisory board entrepreneurs from Tsinghua School of Economics and Management at the Diaoyutai State Guesthouse in Beijing October 23, 2013.
(Peng Sun/Reuters)

China debt audit expected to rip the lid off hidden liabilities

Chinese data confirms that its economy is accelerating. However, an upcoming nationwide audit on regional government debt is lurking behind the optimism like the ominous music in a horror movie.

The stronger data makes stocks exposed to China-related assets like copper and iron ore ripe for short-term trading activity. But the mid-term outlook for the Chinese economy is so fraught with landmines that longer-term investors should limit their portfolio exposure.