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Chinese banks' shadow loans grow despite regulatory glower

UBS data show such loans hit 12.6t yuan in 2015, five times the size of China's annual economic output

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SPD Bank increased its receivables for trust schemes and asset management plans, or shadow loans, by 14 per cent in H1 2016 to 1.27 trillion yuan, giving it China's biggest portfolio of such products.

Beijing

SHADOW lending by listed Chinese banks surged in the first half, underlining the challenges faced by the country's banking regulator as it tries to rein in the use of opaque lending structures that are seen as a threat to financial stability.

China's lenders led by the mid-