Shadow Banking and the Rise of Capitalism in China

Shadow Banking refers to capital that is distributed outside the formal banking system, including everything from Mom and Pop lending shops to online credit to giant state owned banks called Trusts. They have grown from a fraction of the economy ten years ago to nearly half of all China’s annual Rmb 25 trillion ($4.1 trillion) in lending in the economy today. They have been permitted to flourish because many companies cannot get access to formal bank loans. If we define capitalism as economic activity controlled by the private sector, then Shadow Banking is still in a hybrid stage, a halfway house between the state and the private economic. This book is about the growth of shadow banking in China and the rise of China’s free markets. It is the Wild West of banking in China. But it is precisely this divide that makes Shadow Banking an important to the rise of capitalism. How Beijing handles this large free market will say a lot about how the country’s economy will grow – will free markets be granted greater leeway?  . Shadow Banks are a new aspect of capitalism in China – barely regulated, highly risky, yet tolerated by Beijing

If we define capitalism as economic activity controlled by the private sector, then Shadow Banking is still in a hybrid stage, a halfway house between the state and the private economic. They have been permitted to flourish because many companies cannot get access to formal bank loans. They have grown from a fraction of the economy ten years ago to nearly half of all China’s annual Rmb 25 trillion ($4.1 trillion) in lending in the economy today.Shadow Banks are a new aspect of capitalism in China – barely regulated, highly risky, yet tolerated by Beijing. Shadow Banking refers to capital that is distributed outside the formal banking system, including everything from Mom and Pop lending shops to online credit to giant state owned banks called Trusts. It is the Wild West of banking in China. From the Back CoverThis book is about

one of the best books on the Chinese financial system DiskMama3 I would say it's 12 years of my trips to China trying to understand the financial system in one book. Even the anecdotes are similar! Would highly recommend if you are interested in understanding (not a typical beach bookdownright dry but I have to admit I geeked out and found it to be a page turner.) I'd almost say it's going to prove to

Earlier in his career, he was an equity analyst with Bear Stearns and CLSA in Hong Kong, and a journalist covering business for the South China Morning Post in Beijing. Mr. Andrew Collier is the former President of the Bank of China International USA, where he helped to launch BOCI’s U.S. He has a Master’s Degree in International Relations and Chinese Studies from Yale Uni