Huaxia Bank

The Zhongshan Square Branch of Huaxia Bank in Shenyang, Liaoning Province. Photo: SCMP

In tackling shadow banking, China needs to pick a small target first

China’s “shadow banks” have been one of the hottest topics in the financial press lately. Bank of China chairman Xiao Gang, who according to recent rumours would likely take over as China’s top banking regulator soon, has called for tighter regulation.