1. ‘Shadow banking’: What it is and why it’s important https://www.cnbc.com/2018/07/13/what-is-shadow-banking-and-why-is-it-important.html 2. China's Shadow Banking System: Everything You Need To Know https://www.investopedia.com/articles/investing/092415/chinas-shadow-banking-system-everything-you-need-know.asp 3. Shadow Banking System: What You Need to Know https://www.investopedia.com/articles/investing/102314/shadow-banking-system-what-you-need-know.asp 4. What is “Shadow Banking”? https://www.nerdwallet.com/blog/investing/shadow-banking-system/ 5. How to Invest in China's Shadow Banking System https://www.investopedia.com/articles/investing/091515/how-invest-chinas-shadow-banking-system.asp 6. The Risks of Shadow Banking https
(Bloomberg) -- One of China’s largest private wealth managers is triggering fresh anxiety about the health of the country’s shadow banking industry after missing payments on multiple high-yield products.Most Read from BloombergAmerica’s Fastest Growing City Is Embracing ‘Yellowstone’ ManiaOutsider Milei Upends Argentina’s Election With Primary WinGoldman Pencils In First Fed Rate Cut for Second Quarter of 2024The Fed Is Playing a Waiting Game to Try to Avoid a RecessionUS Steel Starts Review as
The Chinese shadow banking giant whose liquidity crisis has fanned fears about financial contagion is planning to restructure its debt and has hired KPMG LLP to conduct an audit of its balance sheet, people familiar with the matter said.
The S&P 500 Index fell below its average price over the last 50 days on Tuesday for the first time in more than three months, while global bond yields reached their highest levels in 15 years this week. Investor sentiment also took a hit on news of Chinas property crisis and troubles in its shadow banking system
As we wrote about in China holiday wrap-up – part three: risks of a financial crisis resurface, 14 August, financial stress has increased lately with another major developer, Country Garden, at brink of default and contagion to the shadow banking system increasingly visible. On top of this economic data has disappointed across the board with both consumer spending, home sales and exports undershooting expectations. Taking these developments into account we revise down growth to 4.8% this and 4.2% next year.
China’s economy continues to make daily headlines for all the wrong reasons. Alternating between plunging exports, stagnant domestic demand, and the potential collapse of its shadow banking system, risks opined on in the press are wide ranging and acute. Authorities meanwhile have continued to focus on their structural reform agenda, remaining passive in their support, in stark contrast to prior cycles. Why do authorities remain sanguine as the market roils? Are they justified in doing so?
Financial stress in China and weak US and euro PMIs set the scene for global markets this week. It started out with continued focus on China where the housing crisis and financial risks from shadow banking has resurfaced. Chinese financial stress eased somewhat during the week, though, as there was no new bad news to fuel a further sell-off. It does not mean the problems are no longer there, however. We see increasing downside risks to Chinese growth and have revised down the annual growth estimate to 4.8% from 5.2%, see Resarch China: downside risks on the rise - scenarios for Chinese growth, 21 August. We expect Chinese policy makers to step up stimulus to stave off a crisis but there is a risk they continue to be two steps behind and growth slows even more.
The largest shareholder of the Chinese trust firm at the heart of the country’s shadow banking crisis plans to delist its shares due to “significant uncertainties,” raising more concerns about financial contagion in the $18 trillion economy.