Scale of and Regulatory Policies on Shadow Banking System in China

The development ofshadow bankingfundamentally changes financial structures and market institutions of the US and even the whole world.Due to China's lagged overall financial development,China's shadow banking system lags significantly behind foreign shadow banking systems,and there is much difference between China's shadow banking and international shadow banking in terms of the hierarchical structures,existing form and core functions.Previous studies in this area are mostly normative studies on the economic influence of shadow banks.This paper,however,discusses the formation and evaluates the scale of shadow banking in China,and conducts an empirical study on the economic effect of shadow banking in China,and concludes by proposing suggestions for better regulating China's shadow banking system.