China shadow banking a 'ticking time-bomb'
China appears to be facing a crisis of confidence from its stock market investors.
Shares in Shanghai, Shenzhen and Hong Kong fell sharply on Monday to their lowest levels in years over concerns that the country is facing a credit crunch - as well as high levels of debt from so-called shadow banking - which provides informal sources of loans for businesses.
The sector is largely unregulated and informal.
The Chinese central bank is trying to limit its influence, a move that could backfire in putting the brakes on China's - and therefore the rest of the world's - growth prospects.
Rajiv Biswas, chief Asia-Pacific economist at IHS Global Insight, told the BBC that the shadow banks could be China's ticking time-bomb.
25 Jun 2013
- From the section Business