But according to Wang Tao, an economist at UBS, these loans account for only 7% of total bank lending.

ECONOMIST: China is pretty well placed to cushion a global downturn

Wang Tao , Chief Economist at UBS, agrees.

FORBES: Premier Wen: A Warning Or Managing Expectations?

My bet is with Andy and Wang Tao.

FORBES: Premier Wen: A Warning Or Managing Expectations?

Wang Tao, chief economist with UBS AG in China, told China Daily on Tuesday that extensions of local-government debt already started last year amid concerns that municipalities were hurting from a sharp decline in housing development and fixed asset investments from Beijing.

FORBES: One Way China Resolves State Budget Problems

"The timing of Chinese New Year played a very important role, " said Tao Wang, an economist with UBS in Hong Kong.

BBC: China reports better than expected trade data