Here's what Nomura's research found: the highest default risk is concentrated in the coastal and western provinces. Central China fares better. The danger provinces include Qinghai, Zhejiang, Liaoning, Hainan, Jiangsu, Fujian, Guizhou, Gansu, Chongqing and Heilongjiang.
"Assessing the geographic distribution of risks is becoming increasingly important, particularly as China’s bond market is on the verge of explosive growth," Nomura analysts led by Yang Zhao wrote in the report.
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