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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