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China debt crunch

Gloom deepens for China Evergrande despite Huarong rescue

Limits seen on state support beyond key financial institutions

HONG KONG -- If bond market moves after the bailout plan arranged for state-owned China Huarong Asset Management are anything to go by, investors now believe government support will only be forthcoming for key financial institutions while other troubled borrowers like property developer China Evergrande Group will have to fend for themselves.

The Huarong bailout, announced last Wednesday, is the "long arm of the Chinese Communist Party moving to avoid financial systemic risk," said Alicia Garcia-Herrero, chief economist for Asia Pacific at French bank Natixis.

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