CNBC's Eunice Yoon discusses a Wall Street Journal report that says China is asking local governments to prepare for Evergrande's downfall.
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Francisco Gimeno - BC Analyst The Evergrande saga has two sides, an international and a local one. While authorities and Evergrande itself reassures investors, locally they prepare for a real property development possible crash, in which Evergrande has a big part. Let's not forget that China has an all powerful central government combined with decentralised local governments which collect taxes, are in charge of revenue generation and have to deal with the land issues.