Shadow debt broadly refers to a type of wealth management products (WMPs) that are sold off the books to Chinas swelling middle-class as they look for risk-free savings options preferable to the gambling culture of the stock market while offering superior returns when compared to the savings rates offered by banks.
Savers are usually offered terms of around 10 per cent for investments around £500,000 by private wealth manager at the bank.
These financial instruments have ballooned into a $18.5trillion market and include everything from investments in commercial property to a small business or a corporate bond.
But this snake-oil market of invisible investments is only made possible by a willing customer base still navel-gazing over their r…
Read the full article at: https://www.express.co.uk/finance/city/897894/Chinese-shadow-debt-an-18-5-TRILLION-market-which-could-COLLAPSE-the-banking-system