An Analysis of Risk and Supervision of China's Shadow Banking

Through studying the numerous reports and literature, using the method of comparative analysis, we give a detailed and comprehensive analysis of the development, behavior, risk and regulatory progress of China's shadow banks respectively. It was found that, in 2013, the size of the shadow banking has reached 27 trillion yuan, accounting for about one-fifth of all the assets of the banking, however, due to the low degree of financial innovation in China, the development of China's shadow banking is still in the initial stage, and there is still great room for development. Secondly, China's shadow banking behavior is mainly asset securitization and part of the repurchase agreement or other, in which risk is mainly the former. Finally, according to the supervision of shadow banking which has been strengthened by Chinese government in recent years, we propose for specific types of shadow banking entities shall formulate specific regulatory strategy to promote the healthy development of the shadow banking system.