China may be the world's second largest economy today, but has its financial system caught up? An expert panel reviews the pros and cons of Shadow Banking in China.
Held in association with The University of Hong Kong, the Fung Global Institute's public seminar on China's Financial Future discussed possible ways forward for China's powerful currency, the Renminbi, and addressed issues and potential concerns triggered by China's Shadow Banking sector.
Moderator: William Overholt, President, Fung Global Institute
Is Shadow Banking in China a threat or does it present opportunities? These were the questions and issues Fung Global Institute President William Overholt and his panel tackled as they sought to make sense of shadow banking in China. All agreed that shadow banking is essential to the growth of China's SME's. But this endorsement came with a warning that unless shadow banking was regulated and brought under control, its excesses disrupt China's economy in some way. Experts say there is little concern that shadow banking might get out of hand, even as they said it was time to reform China's financial system so the country's shadow banks could be brought into the light.