Shadow banking can have good ending

Economy | Wu Jiangang

Although the Chinese shadow banking system is renowned for its opacity, the latest annual financial market report by the Chinese Academy of Social Sciences estimates the system had 20.5 trillion yuan ($3.3 trillion) in total assets - roughly 40 percent of China's GDP - in 2013.

As China is now the second-largest economy in the world, we need to examine the nature and risks in the shadow banking sector.