The American Economic Association estimates that 80 per cent of privately owned Chinese firms have received funds from informal channels. Photo: AP
The American Economic Association estimates that 80 per cent of privately owned Chinese firms have received funds from informal channels. Photo: AP

Is China about to bring shadow banking back out of the darkness to kick start its slowing economy?

  • Government crack down on debt and risky lending also eliminated legitimate funding channels for smaller private sector businesses
  • Government pledging more support for fund smaller businesses, but private sector remains sceptical

The American Economic Association estimates that 80 per cent of privately owned Chinese firms have received funds from informal channels. Photo: AP
The American Economic Association estimates that 80 per cent of privately owned Chinese firms have received funds from informal channels. Photo: AP
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