China's shadow banking market third-largest in the world
With a growth of more than 30 per cent last year to US$2.7 trillion, the mainland market is the third-largest after the US and Britain
China's shadow banking sector expanded rapidly last year to become the world's third-largest after the United States and Britain, according to an annual report issued by the Financial Stability Board yesterday.
"Among emerging markets, the size and rapid growth of shadow banking in China warrants particular attention," the report said.
Despite the fast rise, most analysts say the risks are under control.
The report, presenting data covering 25 jurisdictions and the euro zone, said China's shadow banking market, estimated using a "narrow measure" at US$2.7 trillion at the end of last year, "focuses on the subset of non-bank credit intermediation which potentially poses systemic risks to the financial system".
The US had the world's largest shadow banking sector at US$14 trillion, followed by US$4.7 trillion in Britain, the Financial Stability Board said.
Its estimate of the size of the Chinese shadow banking system is much lower than those given by many analysts.
Moody's Investors Service said shadow banking assets in China reached 37.7 trillion yuan (HK$47.8 trillion) at the end of last year, or 66 per cent of its gross domestic product, up from 52 per cent at the end of 2012.