ABSTRACT
This conclusion presents some closing thoughts on the concepts covered in the preceding chapters of this book. The book considers China’s shadow banking system. The private lending market belongs to China’s vast shadow banking sector. It plays a vital role in credit intermediation by transferring credit from investors to business borrowers. The book examines China’s private lending crisis in 2011, in order to find out economic problems and financial risks that have existed in the underground lending sector. It analyses the changing official attitudes towards the legitimacy of private financing activities, which play a critical role in the policymaking process in this area. The book suggests that the Chinese authorities have to adopt a comprehensive and gradual approach to solve China’s private lending puzzle. It describes the process of financial liberalisation in China’s banking sector, which has a positive impact on the financing condition of medium-sized enterprises.
