ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Finance

China's shadow bank lending shows biggest jump since 2017

Local governments seek alternative funding for Beijing-led infrastructure drive

Shadow banking in China jumped nearly $70 billion in August after four months of declines. (Photo by Yusuke Hinata)

BEIJING -- China's shadow bank financing rose to the highest level in more than 5 years in August, as cash-strapped local governments looked outside the formal lending system to fund infrastructure investment.

Shadow banking assets, including entrusted loans and other nonbank lending products, rose by a net 476.8 billion yuan ($68.8 billion) in August, the most since March 2017, according to data from the People's Bank of China. This was the first net gain in five months, as repayments usually exceed new financing.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more