Economics
China May Ease Shadow-Bank Crackdown to Bolster Slowing Economy
- Off-balance sheet lending has shrunk by one-fifth from peak
- Campaign exacerbates defaults amid economic slowdown
Photographer: Johannes Eisele/AFP via Getty Images
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The virus that’s put China’s economic recovery at risk may ease a crackdown on the shadow banking market, which has shrunk by $1.7 trillion in the past three years.
As the virus spreads, the death count mounts and markets tumble, signs are emerging that policy makers are willing to take a gamble on stepping back from reining in the risky sector, giving the world’s second-biggest economy more breathing room.