SHADOW BANKING RISK FILE BETTER THAN FORMAL BANKING IN CHINA: S&P

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March 28, 2013

HONG KONG - Contrary to perceptions of high risk, ratings agency Standard & Poor's says China's shadow banking system is "yet to destabilise" China’s banking system. S&P released a report today (Thursday) showing the sector has grown to around RMB22.9 trillion yuan (US$3.7 trillion),accounting for 34% of total loans in the Chinese banking system at end-2012. The sector has enjoyed compound annual growth of 34% since end-2010 and is expected to continue to grow in coming years, according to S&P analysts.