"These steps show the central government is really serious about handling the debt," said Zhang Yingjie, deputy general manager of research at China Chengxin International Credit Rating Co, a Moody's Investors Service joint venture. "Sovereign credit was overdrawn in an opaque financing system, but from now on, the responsible parties will be clearly stated."

The economy will grow 7.3 percent this year, the slowest pace in 24 years, according to a Bloomberg survey.

The yuan has fallen about 1.2 percent this year. The trade surplus narrowed to $31 billion last month, compared with the median estimate of $41.1 billion in a Bloomberg survey and the record of $49.8 billion in August, according to official figures released on Monday. Exports grew 15.3 percent, exceeding the 12 percent forecast, while imports rose 7 percent.

"While the State Council guidelines emphasized that the central government won't bear responsibility for local liabilities, it also said the bottom line is to prevent regional and systemic risks," said Xu Hanfei, an analyst at Guotai Junan Securities Co in Shanghai. "So we don't expect any large-scale refinancing difficulties."

Shanghai Chaori Solar Energy Science & Technology Co, which in March became the first company to default in China's onshore bond market, received a guarantee from China Great Wall Asset Management Corp to help make repayments, according to an exchange filing last week.

Because even Chaori's investors were bailed out, the impact of any LGFV debt rollover difficulties will be controlled, said CICC's Chen.

Municipal bonds to fund urbanization push	China targets local gov't debt risks with new rules