Shadow banking activity declined in H1 in China

Almaty. November 7. Silkroadnews - Shadow banking declined in the first half of the year in China, Reuters reports.
“China’s broad shadow banking activity stopped growing in the first half of 2017 and declined relative to gross domestic product for the first time in five years, Moody’s Investors Service said. China’s shadow banking assets were equivalent to 82.6 percent of gross domestic product in January-June, declining from a peak of 86.5 percent in 2016. Moody’s said it was the first time since 2012 that China’s nominal GDP grew faster than its shadow banking assets,” the report said.
According to Moody’s, a reduction in issuance of high-risk instruments, such as wealth management tools and asset management of non-bank financial institutions, contributed to a slowdown in the shadow banking growth, which proves effectiveness of China’s latest regulatory measures.
China has promised to fight illicit banking activities, tightening control over trust and insurance companies and products of management of banks’ off-balance sheet assets.
It also plans to introduce 20 sets of new regulations to strengthen supervision on shadow banking.