China's assault on shadow banking is showing signs of working. Off balance-sheet lending fell the most since at least 2006 last month, led by short-term bill financing, while traditional bank loans rebounded sharply, central bank data showed this week. Regulators' crackdown on bill-financing fraud, tightening of transfers of loan-beneficiary rights to other financial institutions, and implementation of a so-called Macro Prudential Assessment in recent months helped drive lending onto banks' loan books, according to analysts including Deutsche Bank AG's Hans Fan.
To contact Bloomberg News staff for this story: Jun Luo in Shanghai at jluo6@bloomberg.net. To contact the editors responsible for this story: Marcus Wright at mwright115@bloomberg.net, Russell Ward
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