China's stock crash spurs shakeout in shadow banks

Hong Kong

CHINA has been struggling to tame its shadow banks for years. Now, a stock-market crash has hamstrung some of the fastest-growing ones in a matter of weeks.

Loans from sources such as online lenders for equity purchases have plunged by at least 700 billion yuan (S$156 billion), a drop of 61 per cent from this year's peak, after the authorities banned them from funding stock buying in July, according to a Bloomberg survey conducted last month.