@article{9af63930cc0d4758bc5c3de4c3e2b6e1,
title = "Shadow Funding and Economic Growth: Evidence from China",
abstract = "Using popular liability-side wealth management products in China, we construct an informative measure of shadow funding and shadow credit by extension. This measure reflects the risk appetites of financial intermediaries and their ability to expand their balance sheets through bank–shadow-bank cooperation. Our measure possesses unique predictive power for future economic activity. An increase in the measure corresponds to increases in investment and consumption, which, in turn, reduce financing costs due to improvements in economic development.",
keywords = "economic activity, intermediary, shadow credit, shadow funding, wealth management products",
author = "Xu Feng and Xiaowen An and Yahui An and Yajun Xiao",
note = "Funding Information: We would like to thank Sanjay K. Chugh (Editor), the anonymous referee, and the conference and seminar participants at the FMA 2019 Annual Meeting, the Conference on Systemic Risk and Financial Stability 2019 in Freiburg. This paper is supported by the National Natural Science Foundation of China (Grant No. 71871157, 72141304, and 71790594). Part of this work was completed while Yajun Xiao was an assistant professor at Smurfit Business School, University College Dublin. Publisher Copyright: {\textcopyright} 2022 The Authors. Journal of Money, Credit and Banking published by Wiley Periodicals LLC on behalf of Ohio State University.",
year = "2024",
month = mar,
doi = "10.1111/jmcb.13008",
language = "English",
volume = "56",
pages = "589--611",
journal = "Journal of Money, Credit and Banking",
issn = "0022-2879",
number = "2-3",
}
