Zhongrong International Trust Co., a Chinese investment trust with significant real estate exposure, has missed payments on dozens of corporate trust products since late July. Retail investors are left with frustration and panic as they fear they may have lost their life savings. Regulators are concerned they may have to further tame an already faltering economy. It may be time to question the free reign with which shadow banks have enjoyed for decades.
This post was originally published on the Cardozo International & Comparative Law Review on November 14, 2023. The original post can be accessed via the Archived Link button above.
Clements, Benson M., "Out of the Shadows: The Need for Increased Scrutiny of Shadow Banking in China" (2023). CICLR Online. 90.