Introduction: The Mayor of Coal Town

  • Andrew Collier


The chapter gives a brief introduction to China’s fiscal stimulus in 2008 and the increase in Shadow Banks thereafter. These included Trusts, Wealth Management Products sold by banks, and other financial intermediaries such as online lenders. The Introduction also discusses the fiscal imperatives in China’s local governments that drove the Shadow Banking market. These include the need for non-tax revenue from sources such as the sale of land and property. In addition, there is a brief synopsis of the importance of a new form of quasi-governmental company, called Local Government Financing Vehicles. Last, the author concludes with a discussion of the risks and benefits of Shadow Banking in China.


Central Bank Bank Loan Shadow Economy Fiscal Stimulus Shadow Banking 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Bottelier, P. (2015, June). Shadow banking in China. Washington, DC: World Bank.Google Scholar
  2. Calomiris, C. W., & Haber, S. H. (2014). Fragile by design: The political origins of banking crises & scarce credit (p. 13). Princeton: Princeton University Press.Google Scholar
  3. Chen, K., et al. (2016). What we learn from China’s rising shadow banking: Exploring the Nexus of monetary tightening and banks’ role in entrusted lending. NBER.
  4. Dang, T. V., Wang, H., & Yao, A. (2015b, December). Shadow banking modes: The Chinese versus the U.S. system (Working paper). New York: Columbia University.Google Scholar
  5. Financial Stability Board, Basel, Switzerland. (2015a). Shadow banking monitoring report. Basel: Financial Stability Board.Google Scholar
  6. Lardy, N. (2008, September). Financial repression in China. Washington, DC: Peterson Institute.Google Scholar
  7. Lardy, N. (2012). Sustaining China’s economic growth after the great financial crisis. Location 1883. Washington, DC: Peterson Institute.Google Scholar
  8. Tsai, K. (2015a, March). The political economy of state capitalism and shadow banking (Issues and Studies, Vol. 51, pp. 55–97). Taipei: Institute of International Studies.Google Scholar
  9. Tsai, K. (2016, May 27). Presentation, workshop on “Shadow banking and alternative finance in China,” China Studies Centre, University of Sydney.Google Scholar
  10. Zhang, Z. (2013, March 13). China: Rising risks of financial crisis. Hong Kong: Nomura Research.Google Scholar

Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Andrew Collier
    • 1
  1. 1.Orient Capital ResearchHong KongHong Kong

Personalised recommendations