Shadow banking in China is likely to return , with Chinese leaders looking to loans that will help trigger growth , according to economist Xiang Songzuo . "I think this year, regulators will encourage more shadow banking financing, particularly to the private sector," said Xiang, who was previously a deputy director at the People's Bank of China and chief economist at the Agricultural Bank of China. While the government has taken steps to reduce shadow banking over recent years due to concerns that such lending could jeopardise financial stability , Xiang expects to see a change of approach at the annual National People ’s Congress this week as Beijing seeks to reduce risk and galvanise the economy through lending to the private sector .
Shadow banking in China is likely to return , with Chinese leaders looking to loans that will help trigger growth , according to economist Xiang Songzuo . While the government has taken steps to reduce shadow banking over recent years due to concerns that such lending could jeopardise financial stability , Xiang expects to see a change of approach at the annual National People ’s Congress this week as Beijing seeks to reduce risk and galvanise the economy through lending to the private sector .