Motivated by growing concerns about the risks and instability of China's financial system,
this article reviews several commonly perceived financial risks and discusses their roots in …

China's financial system has been integral to its spectacular economic growth over the past
40 years. We review the recent literature on China's financial system and its connections to …

The upsurge of shadow banking is typically driven by rising financing demand from certain
real sectors. In China, the 4 trillion yuan stimulus package in 2009 was behind the rapid …

We study the rise and risks in bank issuance of Wealth Management Products (WMPs),
which are off-balance-sheet substitutes for deposits without the regulatory interest rate …

ABSTRACT In China, between 2006 and 2013, local public debt crowded out the investment
of private firms by tightening their funding constraints while leaving state‐owned firms' …

We perform transaction-level analyses of entrusted loans, one of the largest components of
shadow banking in China. Entrusted loans involve firms with privileged access to cheap …

Motivated by the prevalence of economic targets at all levels of territory administration in
China, this article proposes a Tullock contest model to study optimal target setting in a multi …

We develop a tractable model of banks' liquidity management with an over‐the‐counter
interbank market to study the credit channel of monetary policy. Deposits circulate randomly …

We develop a stylised shadow banking map for China with the aim of providing a coherent
picture of its structure and the associated financial system interlinkages. Five key …

China's economic reforms over the past 40 years have led to a mixed economic structure
with the government playing a key role in an increasingly market-driven economy. This …