UBS analysed 237 Chinese banks, many of them small and unlisted regional lenders
- Regional banks in China's rust-belt provinces are driving the rapid expansion of shadow banking in the country
- Using the shadows' financial products hides the true state of bad loans, circumvents lending restrictions
- Creating "a web of informal lending that poses wider risks to the financial system"
Bloomberg have more detail here. Make sure you are sitting down, and maybe have a barf bag handy :-D
