Shadow lending in China slowed sharply in the first two months of the year as government efforts to control financial risks led banks to bring more credit back on to balance sheets.
But even as shadow financing was squeezed, China’s broad money growth remained stable, with the drop in lending by non-bank financial institutions such as trust companies almost entirely replaced by an increase in conventional bank loans.
On-balance-sheet bank loans accounted for nearly 64 per cent of new credit issuance in China in the first two months of 2014,
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