China’s government versus shadow banking

China’s shadow banking sector is an explicit threat to the national economic growth, moreover, it boosts the odds of default in a number of sectors. The assets are being sold out as banking organizations are coming to light, getting back to standard transparency. By the way, the recent attempts of the regulators to restore order on the interbank market provoked a flow of investment in fixed-income assets, a hardly profitable trading instrument indeed. If the financial regulator keeps tightening the screws, the construction firms and large-scale manufacturing corporations, notorious for undisclosed operations, will be the first to take the blow. As international watchdogs reported, the cost of iron ore contracts in September 2014 tumbled to the lowest level since the trading platform launch last year. Experts relate this fall to the introduction of urgent measures to combat the shadow banking sector developed by the representatives of the People's Bank of China and regulatory authorities. The new regulations are to substitute the step-by-step approach to curb shadow banking, yet part of the previous set of measures will remain. Since the bit-by-bit policy proved to be fruitless, China’s government decided to find the fastest possible way to take the bankers into a rose future.