Inside China's Shadow Banking : The Next Subprime Crisis?

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ISBN13:9781623200169 ISBN10:1623200172 Publisher:EnrichProfessionalPubLtd Publicationdate:16May2013 Language:English

The term "shadow banking" typically refers to the wideranging financial activities which occur outside of traditional banking. Shadow banking activities span every country in the world. In a survey of 26 major countries, the Financial Stability Board found that the amount of money in shadow banking equaled USD67 trillion which was more than the combined GDP of those countries.InChina,shadowbankingaccountsformorethan20trillionRenminbiandmorethan 20% of the country's GDP. Shadow banking involves banks, nonbank financial institutions, and curbmarket financiers and the events in shadow banking can have a huge, and potentially damaging, effect on the larger financial world. Is shadow banking in China likely to become the source of the next global financial crisis or simply a little understood area of the enormous Mainland economy? Financial industry expert Joe Zhang pulls back the curtain on this sector and explains how shadow banking in China impacts the regional and world economies. Within shadow banking, China's microcredit industry is an area of tremendous interest for most business analysts. In Inside China's Shadow Banking: The Next Subprime Crisis?, Joe Zhang pinpoints the areas of concern based on his experience in the field and his knowledge of the complicatedrulesandregulationsofbankinginChinagatheredduringhisyearsasanofficialof the central People's Bank of China in Beijing. Drawing on his time spent at UBS, as well as the workofprominenteconomists,JoeZhangexplainsshadowbankingandmicrocreditinChinafor investors,economists,laypeople,andthegeneralpublic.(goodreads.com)

 EditorialReviews Review Mr Zhang's book is marketed to people who suspect that systemic dangers lurk in these shadows.SimonCox,TheEconomist "Inside China s Shadow Banking" has hit shelves just as concerns about the country's runaway creditboomarecapturingglobalheadlines.PeterThalLarsen,ThomsonReuters One of those who has helped shed a little light among the shadows is Joe Zhang, author of "Inside China's Shadow Banking: The Next Subprime Crisis". Dinny McMahon, Wall Street Journal Now, two years on, he has written a book about his time at Wansui, entitled Inside China's Shadow Banking. His experiences are both illuminating and depressing. "Negative real interest rates and runaway credit growth have reinforced each other," he concludes, "creating thebiggestcreditbubbleontheplanet."TomHolland,SouthChinaMorningPost AbouttheAuthor JoeZhang,50,isanindependentcorporateadvisorbasedinHongKong.From2011to2012,he was Chairman of Wansui Micro Credit Company in Guangzhou, China. He was named "A Microcredit Person of the Year" in January 2012 by the Microcredit Association of China. He worked for 11 years at UBS, mainly as Head of China Research and then Deputy Head of its China Investment Banking Division. From 1986 to 1989, he was an official of the central People's Bank of China in Beijing. From 2006 to 2008, he was the Chief Operating Officer of Shenzhen Investment Limited, a property developer. His work has appeared in The Wall Street Journal,FinancialTimes,InternationalHeraldTribune,andTheNewYorkTimes.