ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book aims to study China’s private lending market from historical, economic, legal, and regulatory perspectives. It examines the revival and development of private financing activities in contemporary China, especially their function in bridging the financing gap of private businesses. The book offers insight into financial risks and economic problems associated with the Chinese shadow banking system. It also examines the main factors that led to the crisis, including the macroeconomic condition, the overheated speculation, and the tightened credit policy. The book considers the changing official attitudes towards private lending activities from the 1990s to the present time, which have been playing an important role in determining the legitimacy of private financing and shaping laws and policy agendas in this area. It argues that the future of private lending lies in the digitalisation, formalisation, and institutionalisation of underground money lending activities.
