China's Fragile Shadow Banking System

Here's All You Need To Know About China's Fragile $2.2 Trillion Shadow Banking System

Matthew Boesler

If economic growth in China continues to slow, rising and sudden defaults on loans made in the country's shadow banking system could threaten to bring down China's traditional banking sector and throw the world's third-largest economy in jeopardy, according to Bank of America Merrill Lynch China Strategist David Cui.
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Why the shadow banking system in China is so important

• The sheer size of the system is overwhelming. 
• The system is also highly leveraged.

Read more: businessinsider.com