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The sector has reduced by more than 29 trillion yuan ($4.3
trillion) as of the end of June from its historical high, Liang
Tao, vice chairman of China Banking and Insurance Regulatory
Commission, was quoted as saying.
He did not specify when the peak was.
Liang warned of high hidden risks, however, as some products
have complex structure and high leverage levels, the newspaper
said.
People should be vigilant of a rebound of shadow banking risks
as some institutions may use improper financial innovations to
create new variants of shadow banking, Liang was quoted as
saying.
In recent years, China has clamped down on shadow banking,
concerned about the hidden risks in the high volume of complex
and potentially risky loans in the sector. But as a weakening
economy puts pressure on businesses and individuals, authorities
fear shadow lending and illegal loans might surge.
($1 = 6.7433 Chinese yuan renminbi)
(Reporting by Judy Hua and Ryan Woo; Editing by William Mallard)
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