On May 11, Tsinghua PBCSF Chairwoman and Dean, Co-head of Tsinghua University National Institute of Financial Research, and Director of CEIBS Lujiazui International Financial Research Center Wu Xiaoling presented the 2014 China Financial Policy Report at the Tsinghua PBCSF Global Finance Forum.
Since its first issue in 2011, the Report has been written by CEIBS Lujiazui International Finance Research Center and the Institute of Finance and Banking at the Chinese Academy of Social Sciences to report yearly changes to Chinese financial policies and analyze the impact these changes have on Chinese financial reform. It utilizes cutting-edge financial research to predict the direction of Chinese economic development and analyze new market trends.
The 2014 Report focuses on shadow banking, analyzing the benefits it has and the problems it causes for China's financial reform. Wu pointed out that according to the most recent research, shadow banking makes up more than 40% of China's total GDP.
Following its rise to prominence, shadow banking has attracted both positive and negative attention from China's financial regulators, but the 2014 Report remains optimistic, concluding that shadow banking has had positive effects on China's economic development through providing flexible liquid capital where needed to fuel steady growth.