© 2017

Shadow Banking and the Rise of Capitalism in China


Table of contents

  1. Front Matter
    Pages i-ix
  2. Andrew Collier
    Pages 1-10
  3. Andrew Collier
    Pages 11-23
  4. Andrew Collier
    Pages 25-33
  5. Andrew Collier
    Pages 35-51
  6. Andrew Collier
    Pages 53-72
  7. Andrew Collier
    Pages 73-85
  8. Andrew Collier
    Pages 87-103
  9. Andrew Collier
    Pages 105-122
  10. Andrew Collier
    Pages 123-143
  11. Andrew Collier
    Pages 145-169
  12. Andrew Collier
    Pages 171-192
  13. Back Matter
    Pages 193-205

About this book


This book is about the growth of shadow banking in China and the rise of China’s free markets. Shadow Banking refers to capital that is distributed outside the formal banking system, including everything from Mom and Pop lending shops to online credit to giant state owned banks called Trusts. They have grown from a fraction of the economy ten years ago to nearly half of all China’s annual Rmb 25 trillion ($4.1 trillion) in lending in the economy today.

Shadow Banks are a new aspect of capitalism in China – barely regulated, highly risky, yet tolerated by Beijing. They have been permitted to flourish because many companies cannot get access to formal bank loans. It is the Wild West of banking in China. If we define capitalism as economic activity controlled by the private sector, then Shadow Banking is still in a hybrid stage, a halfway house between the state and the private economic. But it is precisely this divide that makes Shadow Banking an important to the rise of capitalism. How Beijing handles this large free market will say a lot about how the country’s economy will grow – will free markets be granted greater leeway?  


Shadow Banking Chinese Banking System Private Sector in China Financial Sector Privatization Capital Investment Chinese Economic Liberalization

Authors and affiliations

  1. 1.Orient Capital ResearchHong Kong

About the authors

Andrew Collier is the former President of the Bank of China International USA, where he helped to launch BOCI’s U.S. office. Earlier in his career, he was an equity analyst with Bear Stearns and CLSA in Hong Kong, and a journalist covering business for the South China Morning Post in Beijing. He has a Master’s Degree in International Relations and Chinese Studies from Yale University and studied Chinese at Peking University. He also is a Senior Fellow at the Mansfield Foundation in Washington. He writes frequently for the Financial Times, Wall Street Journal, South China Morning Post, The Diplomat and other publications. Mr. Collier is currently based in Hong Kong where he conducts independent research on China’s economy.

Bibliographic information

Industry Sectors
Finance, Business & Banking