SIGNATURE WORK
CONFERENCE & EXHIBITION 2024

Shadow banking in China has emerged as a significant yet complex component of the financial landscape, transforming the ways in which credit, liquidity, and maturity are managed outside the traditional banking system. Over the past decade, its exponential growth has notably influenced the financing frameworks available to various sectors, particularly small and medium-sized enterprises (SMEs). These enterprises are critical to China’s economy, driving substantial growth and generating employment. However, the interplay between SMEs and the shadow banking sector presents both opportunities and challenges, making it a critical area of study.

This research focuses on dissecting the impact of shadow banking on SME financing, a vital aspect given the sector’s reliance on external funding for growth and operational sustainability. By examining the mechanisms through which shadow banking operates, including its credit provisions, liquidity options, and maturity transformations, the study aims to understand how these financial practices affect SMEs. Furthermore, the research seeks to illuminate the regulatory framework surrounding shadow banking, assessing its adequacy, effectiveness, and implications for financial stability and SME growth.