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As China defaults grow, what is your trade?

The health of China's credit market has been in focus following the mainland's first bond default earlier this month by Shanghai Chaori Solar Energy Science & Technology.

Last week, those fears intensified on reports that property developer Zhejiang Xingrun Real Estate defaulted on almost $400 million worth of bank loans.

(Read more: Default risks trigger fresh fears over China property market)

Some traders have said Beijing's liquidity strain is headed towards a Lehman Brothers-style moment as the government chooses not to bail out struggling firms.

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