Formal opening: Dr Jane Golley, Director, Australian Centre on China in the World
Keynote address: Dr Sara Hsu (China Rising Capital Forecast)
Shadow banking in China as “funny money”
Shadow banking in China has been viewed by some government officials as illegitimate finance, but as a key means of financing by others. For the former, the industry has been seen as overly risky, potentially undermining the formal financial system. The latter see shadow banking as an increasingly important part of the financial system, filling a gap in the provision of finance to particular sectors and smaller firms. We analyze the impact of government attitude and actions on the shadow banking sector. This paper contributes to the shadow banking literature by analyzing the impact of government regulation and media participation on the shadow banking and non-shadow banking financial sectors (i.e., the stock market). Using a unique data set based on data collected from various sources in a time series analysis, we find that shadow banking regulation plays a strong role in China’s financial sector.
This public lecture is part of the “Funny Money” workshop funded by the Australian Centre on China in the World.
Keynote presentation will be followed by refreshments - registration is essential.