Shanghai/Hong Kong – For more than a decade, Chinese developers’ debt-fuelled construction boom enriched the country’s shadow banks, which were eager to capitalise on the needs of an industry desperate for credit and too risky for traditional lenders.
Now, in the wake of a government clampdown on real estate firms’ debt binge, that credit demand has collapsed – and so too has the single biggest revenue stream for shadow banks, also known as trust firms.
