Uploaded May 2013 | Updated September 2026, 2 hours ago
China's shadow banking totaled almost 36 trillion yuan, or $5.8 trillion at the end of 2012. That's 69% of the country's GDP, according to a report by JP Morgan released earlier this month.
Zhu Haibin, Chief China Economist at JPMorgan Chase & Co co-authored the research report. It says the amount doubled between 2010 to 2012. Even though China's shadow banking is still relatively small compared to that of other countries, the researchers say that, from the perspective of financial stability, the rapid growth of shadow banking, rather than its size, could lead to problems in the system.
JP Morgan noted that, shadow banking in China is at best vaguely defined with trust companies and wealth management products making up the majority of the industry. These emerged to get around limitations on interest rates for deposits from state-run banks.
On Thursday, China's central bank urged the market to, quote "fend off" the systematic risks of wealth management products, as concerns over China's lending market continue to build.
China's shadow banking totaled almost 36 trillion yuan, or $5.8 trillion at the end of 2012. That's 69% of the country's GDP, according to a report by JP Morgan released earlier this month.
Zhu Haibin, Chief China Economist at JPMorgan Chase & Co co-authored the research report. It says the amount doubled between 2010 to 2012. Even though China's shadow banking is still relatively small compared to that of other countries, the researchers say that, from the perspective of financial stability, the rapid growth of shadow banking, rather than its size, could lead to problems in the system.
JP Morgan noted that, shadow banking in China is at best vaguely defined with trust companies and wealth management products making up the majority of the industry. These emerged to get around limitations on interest rates for deposits from state-run banks.
On Thursday, China's central bank urged the market to, quote "fend off" the systematic risks of wealth management products, as concerns over China's lending market continue to build.
