China's shadow bank lending rises to record in Q1
Sector's growth is an unintended side effect of the government's campaign against financial leverage
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Shanghai
CHINA'S shadow banking is back in full swing, an unintended side effect of the government's campaign against financial leverage, which has curbed traditional lending and squeezed bond financing.
Data from the central bank last week showed that off-balance sheet lending surged 754 billion yuan (S$153 billion) in March, taking the first quarter's total increase to a record 2.05 trillion yuan. Efforts by the People's Bank of China (PBOC) to curb fresh lending may have prompted borrowers, especially real estate developers, to resort to alternative forms of financing, said Xu Gao, chief economist at Everbright Securities Co.
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