Only Regulatory Action Curbed Explosive Growth In Chinese Shadow

Thanks (and only thanks) to unified initiatives from PBoC, CBRC and CSRC, under Central government’s guidance,  the runaway growth in China’s Shadow Banking “industry” has witnessed a trend reversal, notes Moody’s. David Yin and colleagues said in their July 3 research piece on Chinese banks that they believe these regulatory actions are credit positive for Chinese banks. China’s Shadow Banking, Drop in wealth management product issuance from financial instutions Yin and team traced the major regulatory initiatives from Chinese regulators aimed at curbing systemic financial risks since the second half of 2016. They now underscore that these initiatives from the…