"Shadow Banking in China: Understanding the Chinese Banking Environment"
Prof. Ying Liu, HEC Lausanne alumna and Assistant Professor at the Shanghai University of Finance and Economics will provide an overview of the shadow banking system in China. This event will take place in Shanghai and is organized by the Club HEC Lausanne in Shanghai in collaboration with swissnex China.
Wednesday 23 January 2019 (18h30 - 20h00) - swissnex China, Building A, Far East International Plaza, 319 XianXia Road, Shanghai, - swissnex China office 22F
The term shadow banking may conjure up images of shady back-room transactions in most people. However, it is not necessarily a detrimental system; In fact, it has been part of the financial system in many countries. The term was coined to describe all activities related to credit intermediation, liquidity and maturity transformation that takes place outside the regular banking system. Before 2015, entrusted loans constituted the largest component of China’s shadow banking system. Nowadays China’s shadow banking is made up mostly of Wealth Management Products. What are these unregulated financial activities and why did this shift occur? We will discover the reasons for the fast growth of the market and the associated risks in this lecture.
Prof. Ying Liu is an assistant professor at the Shanghai University of Finance and Economics and an alumna of HEC Lausanne. Her research focuses on entrusted loans, which is corporate loans between two firms and a major part of China’s shadow banking system. She will show us what is shadow banking, and the legal activities or products of China’s Shadow Banking sector.