China;s country wide government audit

[IMA_FARANG]

I know that this is a place about business in Thailand subjects, but I just saw this article on BBC World Service yesterday.

The details as of yet are unknown, but this could be potentially a big thing in China and therefore could affect all of Asia and Thailand included, so I hope the moderators will allow me some leeway to post the subject here.

First of all, here's a link to the BBC story so you can read the story yourselves"

http://www.bbc.co.uk/news/business-23486466

As the article makes clear there are few details yet but the Chinese government is obviously worried (as the article says) to order the National Accounting Office to suspend all other investigations at least temporarily and to do this audit as a priority.

As the article also make clear the potential amount is in the trillions of Yuan (and nearly 1 trillion British Pounds).

Clearly this is a massive amount. Only a small percentage (if so found to be) "under allocated" or "not completely funded" as is the polite terminology the Chines government spokesmen are using, then:

1. What's the effect in ..... less just call it what it may be... a several hundred million in Yuan shortfall in the Chinese government inability to meet it's obligated spending funding?

2. But more importantly, if the worst happens, what will problems in China and a severe slowdown in it's growth rate caused by funding shortfalls do to the rest of Asian economies.... especially Thailand.

I don't know, but I'd just like opinions from those who are in the position to know what effect in case of the "worst case scenario" in China would have in Asia and particularly Thailand.

Opinions anyone?

[CobraSnakeNecktie]

it's interesting initiative

My guess is they have already done some auditing and estimates and now this is beginning of some serious house cleaning.

If they want to move forward and achieve increased investor confidence then perhaps they see it as necessary step to lessen the tidal wave of rumors.

There have to be some extremely nervous individuals who might be served up to justice system.