China's shadow banking crusade risks bond market crash
Analysts fear that the unintended consequences of govt efforts could trigger the fate it seeks to avoid
Shanghai
CHINA'S campaign to cut high debt levels in its economy is aiming this year to shrink the US$3 trillion shadow banking sector, which could drain a critical source of income for the country's banks and of funding for its fragile bond market.
Shadow banking, a term for financial agents that perform bank-like activity but are not regulated as banks, has boomed in China, the world's second largest economy, as a way of circumventing government's tight controls on lending.
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