China is cracking down on shadow banking -- here's what that means for markets

REUTERS/Carlos Barria As a result of past financial regulations, shadow banking has become a big part of China's economy. Chinese authorities are trying to rein in off-balance-sheet financing. The crackdown has lessened cash flows in the country, but most technical impacts seem to be priced in. On 27 April 2018, China authorities announced major new asset management rules aimed at tightening shadow banking activities and reducing the systemic risks in order to develop a healthier domestic capita...