To tackle financial risks in the banking system, China has taken a hard stance against shadow banking. Photo: Reuters

China regulatory failure to contain financial excesses putting off some foreign investors

  • As long as demand for credit from cash-strapped small businesses and investors remains unaddressed, financial excesses are likely to recur, analysts say
  • Despite regulatory clampdown P2P lending platforms are unlikely to disappear because banks are reluctant to lend to small companies due to credit risk
Topic |   Peer-2-Peer

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To tackle financial risks in the banking system, China has taken a hard stance against shadow banking. Photo: Reuters
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Some 700,000 local government financing vehicles are used by provincial and lower level governments to evade restrictions on borrowing. Photo: AFP

China upgrading local government financial monitoring system to rein in ‘hidden debt’

  • China is strengthening a national monitoring system that keeps tabs on some 700,000 local government financing vehicles
  • Beijing has launched a number of programmes to rein in excess local debt and risky bank lending in recent years
Topic |   China economy

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Some 700,000 local government financing vehicles are used by provincial and lower level governments to evade restrictions on borrowing. Photo: AFP
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