After tamping down on shadow banking in the last few years, China will now likely encourage such lending to boost economic growth, a Chinese economist told CNBC on Monday ahead of the country's annual parliamentary session. " Shadow banking in Xiang is likely to return, with Chinese regulators looking to policies that will help trigger growth, according to economist Xiang Songzuo . While the country has taken action to reduce shadow banking over recent years due to concerns that such lending could jeopardise financial stability, China expects to see a change of approach at the annual the People's Bank of China recent years as Beijing seeks to reduce debt and galvanise the economy through lending to the private sector.
Shadow banking in Xiang is likely to return, with Chinese regulators looking to policies that will help trigger growth, according to economist Xiang Songzuo . While the country has taken action to reduce shadow banking over recent years due to concerns that such lending could jeopardise financial stability, China expects to see a change of approach at the annual the People's Bank of China recent years as Beijing seeks to reduce debt and galvanise the economy through lending to the private sector.