Liaoning Is China's Shadow-Banking Hotbed

The video discusses the economic slowdown in a Chinese province with a GDP growth of 2.1%, the slowest among China's 31 provinces. It explores the challenges faced by banks due to corporate borrowing slowdowns and defaults, leading to increased shadow banking activities. The impact of regulatory crackdowns on regional banks is examined, along with the potential risk of financial contagion. The scale of shadow lending, estimated at 14 trillion yuan, is highlighted, emphasizing the government's efforts to control it.

How does the crackdown on shadow lending impact the indebtedness of regional banks?

What are the potential risks associated with extending shadow loans outside their home province?