Paul,

Excellent insights on Chinese Shadow Banking! The CFA Society of Chicago held a conference recently with Even Feigenbaum (The Paulson Institute), Patrick Chovanec (Silvercrest Asset Management) and Andy Rothman (Matthews International Capital Management) which your readers may enjoy covering both the pros and cons of shadow banking (Detailed report here: https://www.linkedin.com/pulse/20141205180753-174377765-chinese-shadow-…)

I believe the sharp selloffs (12/9/14 and 1/19/15) in Chinese markets on news of tightening credit standards on repo collateral, entrusted loans and infrastructure bonds so how sensitive Chinese markets are to the amount of excess credit in the system. Time will tell if the regulators can reign it in efficiently.

Thanks again!

Bob