“The Shadowiest Corner Of Shadow Banking” – A Sunday Trip To Chinatown

China's labyrinthine shadow banking complex has been a source of concern for years. It's always been readily apparent that credit expansion via the country's network of impossibly convoluted back channels has served to inflate bubbles in all manner of assets by encouraging rampant speculation. It's also painfully obvious that healthy deleveraging and the purging of misallocated capital has been severely impaired by the existence of end-around credit facilities. Further, the risk associated w