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Book Cover
E-book
Author Lu, Lerong

Title Private Lending in China : Practice, Law, and Regulation of Shadow Banking and Alternative Finance
Published Milton : Routledge, 2018

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Description 1 online resource (199 pages)
Series Routledge Research in Finance and Banking Law Ser
Routledge Research in Finance and Banking Law Ser
Contents Cover; Half Title; Series Page; Title Page; Copyright Page; Dedication; Contents; List of figures and tables; List of legislations; Preface; 1 Introduction; 2 Private lending market: historical evolution and operating mechanism; 3 The private lending crisis: cause, effect, and risk; 4 The legal framework of private lending; 5 Regulating private lending: rationale and practice; 6 The future of private lending; 7 Conclusion; Index
Summary This book explores China's private lending market from historical, economic, legal, and regulatory perspectives. Private lending refers to moneylending agreements between business borrowers andtheir debt investors without the involvement of banks. In China, it remains difficult for private entrepreneurs to obtain sufficient loans from state-owned banks. Thus, private lending has been a vital alternative financing channel for over 80 million businesses which are reliant on private funds as their major source of operating capital. The market volume of private financing stands at 5 trillion yuan (dollar783bn), making it one of the largest shadow banking systems in the world. Despite the wide popularity and systemic importance of private lending activities, they have remained outside of the official regulatory framework, leading to extra financial risks. In 2011, China's private lending sector encountered a severe financial crisis, as thousands of business borrowers failed to repay debts and fell into bankruptcy. Lots of bosses who found it impossible to liquidate debts ran away to hide from creditors. The financial turmoil has caused substantial monetary losses for investors across the country, which triggered social unrest and undermined the financial stability. This book is a timely work intendedto demystify China's private lending market by investigating its historical development, operating mechanism, and special characteristics. It evaluates the causes and effects of the latest financial crisis by considering a number of real cases relating to helpless investors and runaway bosses. It conducts an in-depth doctrinal analysis of Chinese laws and regulations regarding private lending transactions. It also examines China's ongoing financial reform to bring underground lending activities under official supervision. Finally, the book points out future development paths for the private lending market. Itoffers suggestions for global policymakers devising an effective regulatory frameworkfor shadow banking. It appeals to researchers, lecturers, and students in several fields, including law, business, finance, political economy, public policy, and China study
Notes Print version record
Subject Commercial loans -- Law and legislation -- China
Nonbank financial institutions -- Law and legislation -- China
Small business -- Finance -- Law and legislation -- China
Informal sector (Economics) -- Finance -- Law and legislation -- China
BUSINESS & ECONOMICS -- Finance.
BUSINESS & ECONOMICS -- Personal Finance -- General.
alternative finance.
P2P lending.
private lending.
shadow banking.
small businesses.
banking law.
financial regulation.
Commercial loans -- Law and legislation
Nonbank financial institutions -- Law and legislation
Small business -- Finance -- Law and legislation
China
Form Electronic book
ISBN 9780429823916
0429823916
9780429823909
0429823908
9780429823893
0429823894
9780429447174
0429447175