China’s internet financial products – a new form of Shadow Banking?

HONG KONG – In a comment on developments in China’s financial markets, ANZ Bank says concerns are rising that potentially risky Internet financial products are not regulated in China,and could drive up the costs of funds.

“Internet financial products have provided a convenient means to help investors manage their money, and will be a catalyst in accelerating China’s deposit rate liberalisation,” the report says. “However, it is still too early to conclude whether online financial products will bring about more risks to the whole financial system.

ANZ says China’s Internet financial products have developed rapidly in the last couple of years, propelled by rapid developments in e-commerce in China - and interest rate liberalisation. www.live.anz.com  (ATI).