Tighter Liquidity, Stricter Regulatory Scrutiny to Dampen China’s Shadow Banking Activity, Moody’s says
(Beijing) — A combination of tighter liquidity and stricter regulatory scrutiny on commercial lenders’ off-balance sheet activities will dampen fast-growing shadow banking activity in China, a recent report by Moody’s says.
Broad shadow banking assets, including entrusted loans, financing through trust companies, undiscounted bankers’ acceptances, and wealth management products (WMPs) reached 58 trillion yuan ($8.42 trillion) in the first half of 2016, equivalent to 82% of gross domestic product, according to the recent report released by Moody’s Investor Service.
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