A particular concern are the multiplying links between China 's commercial and " shadow " banks . Shadow banking now hold assets that exceed 80 % of China 's GDP , says Moody 's , of which most of them are linked to the commercial banking sector in some form ; that poses a systemic threat , warn analysts . The line between good shadow banks and dodgy ones is increasingly hazy , as is the divide between shadow and the more trusted commercial banking . Wealth management products held as receivables now account for around three trillion yuan ( $ 500bn ) of interbank holdings ; this has increased sixfold in three years . Autonomous Research says as much as 85 % of those assets could have been resold to other shadow banks , creating a web of cross - ownership with disturbing similarities to the US mortgage securities market just prior to the 2008 financial crash . Overall , the big four Chinese state - owned banks hold over $ 2tn in " financial investment " , much of it in trusts and wealth - management products .
A growing concern are the multiplying links between China's commercial and "shadow" banks. Shadow banking now hold assets that exceed 80% of China's GDP, says Moody's, of which most of them are linked to the commercial banking sector in some form; that poses a systemic threat, warn analysts. The line between good shadow banks and dodgy ones is increasingly hazy, as is the divide between shadow and the more trusted commercial banking. Wealth management products held as receivables now account for around three trillion yuan ($500bn) of interbank holdings; this has increased sixfold in three years. Autonomous Research says as much as 85% of those products could have been resold to other shadow banks, creating a web of cross-ownership with disturbing parallels to the US mortgage securities market just prior to the 2008 financial crash. Overall, the big four Chinese state-owned banks hold over $2tn in "financial investment", much of it in trusts and wealth-management products.