Zhongzhi won’t be the last shadow bank to run into trouble. Others are also suffering from mounting losses on their assets and a funding squeeze as cautious investors shift money into deposits and government bonds. But shadow banking isn’t as important to China’s financial system as it once was and doesn’t pose as big a systemic threat as some fear.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services