China’s shadow banking sector, which  was estimated at US$12.9 trillion in 2019, had shrunk by US$4.3 trillion at the end of June. Photo: AFP
China’s shadow banking sector, which was estimated at US$12.9 trillion in 2019, had shrunk by US$4.3 trillion at the end of June. Photo: AFP

Chinese regulator says shadow banking sector needs constant scrutiny to guard against risks spilling over into the economy

  • Regulations on shadow banking need to be strengthened as some inappropriate financial innovation has created new risks, CBIRC official says
  • China’s clampdown on shadow banks has shrunk the sector by 29 trillion yuan as of end June

China’s shadow banking sector, which  was estimated at US$12.9 trillion in 2019, had shrunk by US$4.3 trillion at the end of June. Photo: AFP
China’s shadow banking sector, which was estimated at US$12.9 trillion in 2019, had shrunk by US$4.3 trillion at the end of June. Photo: AFP
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