China bank survey: The return of shadow banking

CHINA ADVISORY - Report 19 Oct 2018 by Andrew Collier

Beijing is returning to stimulus to prevent a decline of GDP at a time of the threat from the Trade War. We see this growth in lending, both on and off balance sheet, in our October bank survey. One policy that has been surprisingly effective is the increase in lending to small businesses, a key driver of employment and economic growth. We plan to follow up with further analysis of the implications of the data.

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