Those debt concerns have led some to claim that shadow banking in the Chinese economy could eventually lead to a financial crisis if the bubble bursts, although Morgan Stanley has said Beijing will likely better manage the risks of people borrowing from non-official channels this time, compared to years ago. Shadow banking in China is likely to return, with Chinese regulators looking to policies that will help trigger growth, according to economist Xiang Songzuo. The central bank has been trying to stimulate the economy by cutting interest rates and increasing lending rates, but it may be too little, too late.
Shadow banking in China is likely to return, with Chinese regulators looking to policies that will help trigger growth, according to economist Xiang Songzuo. The central bank has been trying to stimulate the economy by cutting interest rates and increasing lending rates, but it may be too little, too late.