Financing Small and Medium Enterprises in China: Recent Trends and Prospects beyond Shadow Banking

Kellee Tsai ()
Additional contact information
Kellee Tsai: Division of Social Science, Hong Kong University of Science and Technology

No 2015-24, HKUST IEMS Working Paper Series from HKUST Institute for Emerging Market Studies

Abstract: Small and medium enterprises (SMEs) represent the backbone of China's economy, yet they lack access to bank credit. SMEs thus rely on a wide range of alternative sources, including informal finance, online peer-to-peer (P2P) platforms, registered non-banking financial institutions (NBFIs), and underground financiers. This paper distinguishes among different types of 'shadow banking' to clarify popular misconceptions about the nature of risks associated with informal financial intermediation in China. The evolution of SME finance in other contexts suggests that regulated and well-managed NBFCs provide an enduring foundation for commercialised financial intermediation even in advanced industrialised economies.

Keywords: China; shadow banking; informal finance; financial development (search for similar items in EconPapers)
JEL-codes: G21 G23 O17 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2015-05, Revised 2015-05
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-ent, nep-iue, nep-sbm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://iems.ust.hk/assets/publications/working-papers-2015/iemswp2015-24.pdf First version, 2015 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hku:wpaper:201524

Access Statistics for this paper

More papers in HKUST IEMS Working Paper Series from HKUST Institute for Emerging Market Studies Contact information at EDIRC.
Bibliographic data for series maintained by Carla Chan ( this e-mail address is bad, please contact ).