China’s shadow banking risks have been greatly reduced, according to the regulator
BEIJING, July 30 – Today in BEIJING, The amount of assets held by China’s shadow banking industry as well as the dangers associated with it have greatly decreased as a result of ongoing control, according to a senior regulator who was mentioned in the state-run Securities Times on Saturday. The statement was made by a person who was mentioned in the newspaper.
As of the end of June, the market value of the sector had decreased by more than 29 trillion yuan, which is equivalent to around $4.3 trillion. This is a reduction from its previous all-time high. The deputy chairman of the China Banking and Insurance Regulatory Commission, Liang Tao, was quoted as saying something similar, according to what was published.
He did not provide any specifics on the date of the peak in his response.
According to the article that was published in the newspaper, Liang issued a warning about significant hidden risks that are linked with certain products owing to the convoluted structures and high leverage levels.
According to what was cited as being said by Liang, people should be on the lookout for a return of the dangers associated with shadow banking because certain organisations may exploit unsound financial innovations to establish new varieties of shadow banking. People should be on the lookout for a return of the dangers associated with shadow banking.
In recent years, China has intensified its crackdown on shadow banking in response to growing concerns over the hidden dangers posed by the sector’s enormous number of complicated and possibly risky loans. This is China’s response to the growing concerns over the hidden dangers posed by the shadow banking sector. The authorities are afraid that shadow finance and illegal loans may expand as a consequence of the failing economy, which puts burden on both businesses and individuals. This is because the faltering economy places pressure on both groups.
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