Impact of Shadow Banking on China’s Stock Market

Primary Faculty Mentor’s Name

Charles Hodges

Proposal Track

Student

Session Format

Poster

Abstract

The purpose of this research is to cultivate an in depth understanding on how the unregulated practice of shadow banking influences certain segments of China’s financial industry. In recent years, China’s significant economic growth has gathered the attention of their global investors and competitors. Shadow banking is an alternative solution used to gain short-term and long-term assets, which contribute to China’s financial growth. Shadow banking refers to the act of financial institutions, when lending money to various businesses and local governments at high interest rates outside of the standard financial system. Throughout our research, we will perform an analysis of the Shanghai Stock Exchange, and discover how unregulated banking affects the Chinese stock market. This research will conclude with an understanding on the role of shadow banking and equity values in China. We will try to determine if shadow banking in China has a positive or negative effect on the perceived value of Chinese stocks.

Keywords

China, Finance, Banking, Stock exchange

Location

Concourse/Atrium

Presentation Year

2014

Start Date

11-15-2014 9:40 AM

End Date

11-15-2014 10:55 AM

Publication Type and Release Option

Presentation (Open Access)

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Nov 15th, 9:40 AM Nov 15th, 10:55 AM

Impact of Shadow Banking on China’s Stock Market

Concourse/Atrium

The purpose of this research is to cultivate an in depth understanding on how the unregulated practice of shadow banking influences certain segments of China’s financial industry. In recent years, China’s significant economic growth has gathered the attention of their global investors and competitors. Shadow banking is an alternative solution used to gain short-term and long-term assets, which contribute to China’s financial growth. Shadow banking refers to the act of financial institutions, when lending money to various businesses and local governments at high interest rates outside of the standard financial system. Throughout our research, we will perform an analysis of the Shanghai Stock Exchange, and discover how unregulated banking affects the Chinese stock market. This research will conclude with an understanding on the role of shadow banking and equity values in China. We will try to determine if shadow banking in China has a positive or negative effect on the perceived value of Chinese stocks.