Skip to content
Subscriber Only

As China's Shadow Banking Takes a Hit, the Cash Flows Elsewhere

China’s giant shadow banking industry shrank for the first time in nine months during July -- evidence Beijing’s campaign to quash risks to the financial system may be starting to bear fruit.

At the same time, however, traditional forms of lending are seeing a renaissance. Net corporate bond issuance has been jumping as non-financial corporations opt for cheaper sources of finance than borrowing in the shadow banking sector, where costs have surged amid the government crackdown.