With the memory of the collapse of Lehman Brothers in 2008 still fresh, the growth of thinly regulated shadow banking activity in China, such as the sale of a wealth management product by a branch of Huaxia Bank, has been a cause of concern for investors. Photo: Bloomberg

US meltdown shadow looms large over China

But observers believe Beijing could use its massive foreign reserves to save financial system if shadow banking activity spirals out of control

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With the memory of the collapse of Lehman Brothers in 2008 still fresh, the growth of thinly regulated shadow banking activity in China, such as the sale of a wealth management product by a branch of Huaxia Bank, has been a cause of concern for investors. Photo: Bloomberg
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