China’s Shadow Banking Business Continues to Grow

Shadow banking in China increased to 58 trillion yuan which is more than 80% of GDP, according to a report from Moody’s; total social financing has now risen to an estimated 220% of GDP; Moody’s says light regulation in the nonbank sector is a concern and the new regulations proposed by the government are needed to help manage risk and keep the business from causing major liquidity problems for the broad market.  Source