From UBS on China’s latest effort to stamp out shadow banking:
In aggregate, these assets are roughly equivalent in size to 16% of total banking sector loans. However, they are deeply concentrated in subsets of the banking sector that account for around 43% of total banking sector assets: the joint stock banks (JSBs), city commercial banks (CCBs), rural commercial banks (RCBs) and other rural lenders (see Figure 1). Notably, foreign banks hold none of these assets, while the big five commercial banks and the policy banks hold immaterial amounts (see Figure 3).
…the fastest-growing assets in H115 for listed banks(excluding the big five commercial banks, which still continue to have immaterial holdings of these assets—see Figure 3), with shadow loan growth of Rmb1.4trn versus Rmb1.2trn loan book growth.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
