Apr
19
China’s $8.5 Trillion Shadow Bank Industry Is Back in Full Swing
By-
Curbs prompting borrowers to seek alternative funding sources
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Government treading ‘fine line’ on financing: Everbright
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 Friday showed that off-balance sheet lending surged 754 billion yuan ($109 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 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…
China’s $8.5 Trillion Shadow Bank Industry Is Back in Full Swing
