China has increased their cash infusions this year. This leads to obvious questions around moral hazard. If it wants to create a muni-like structure, and legitimate local-level investor trust, the system has to work at the local level. In order for that to happen the players getting crunched need to be purged.
When will China allow for the pain needed to purge the weak players?
The central government has a lot of money, and can prolong the natural pain. But one day we will wake up, and see that they decided to teach the bad-boys a lesson.