Former senior economist at Fitch, Charlene Chu, warns about the rising danger of shadow banking in China - SMH
- Says: "One of the reasons why the situation in China has been so stable up to this point is that, unlike many emerging markets, there is very, very little reliance on foreign funding. As that changes, it obviously increases their vulnerability to swings in foreign investor appetite... It is very hard to work out the exposures of individual banks to the Chinese financial system, but it seems to us there are some very large numbers on some of the banks balance sheets. "