India Sees a Shadow-Banking Boom Despite China’s Funk
Tycoon Ambani’s lending unit gets off the ground with a $19 billion valuation. Bajaj Finance, the current leader, is gunning for 30% growth.
Despite a weak debut, Jio remains emblematic of great expectations.
Photographer: Dhiraj Singh/BloombergNot all shadow banks are born equal. Just as nonbank lenders in China face a liquidity crunch because of their linkages with troubled property developers, their counterparts in India are moving into a higher gear.
The trajectory of financiers, especially those who don’t take state-insured deposits, is beginning to diverge in the neighboring economies. In India, Mukesh Ambani’s Jio Financial Services Ltd. made its stock-market debut Monday after being spun off from Reliance Industries Ltd., the tycoon’s flagship. The stock fell 5% on the first day of trading because nobody knows what this brand-new business will do exactly. Still, the lofty $19 billion valuation suggests investors have great expectations.