World Bank: Soaring rates of 'shadow banking' add to fears of Chinese debt

As cited in the World Bank’s October report on the East Asian and Pacific economies, fears that the steep growth of shadow banking could trigger a debt crisis in China’s, the UK Telegraph reports.

Key Points:

Chinese debt levels, and specifically "shadow banking" ... one of the greatest threats to regional prosperity

"Creating additional vulnerabilities in the financial sector"

The three most representative shadow banking activities; entrusted loans, trust loans, and bankers' acceptances, had "soared from under 7pc of GDP in 2005 to over 31pc of GDP in 2016," the World Bank warned.dhw