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China’s crackdown on shadow banking could seriously upset global markets


HONG KONG: Amid all the talk of remarkably subdued levels of volatility, signs of potentially severe stress are emerging from one of the most – if not the most – vulnerable areas in global financial markets: China’s unruly shadow banking sector.

The Beijing government’s efforts to discipline its financial system and rein in a huge credit bubble have already led to a deterioration in sentiment in the country’s equity and debt markets.

   

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