КИТАЙСЬКИЙ ТІНЬОВИЙ БАНКІНГ У НОВОМУ КОНСТРУКТІ ТІНІЗАЦІЇ СВІТОВОЇ ЕКОНОМІКИ

Abstract

The article examines the influence of shadow banking in China on the shadowing of the world economy. The new construct of the shadowing of the world economy includes the facilitation of cross-jurisdictional transactions, comprehensive digitalization, and the introduction of innovations, including financial ones, which, in combination with weak regulation, opacity, and market demand, accelerated the development of shadow banking in the period after the global financial crisis. The introduction of new financial innovations leads to the emergence of new types of institutions that perform the functions of shadow banking. The rapid development of shadow banking has played a positive role in the post-crisis recovery, but highly technical transnational emission, opacity, and significant volumes of shadow banking create the danger of spreading systemic risks and the risks of shadowing the global economy. The exponential growth of Chinese shadow banking, and subsequently its sharp reduction due to the introduction of regulatory restrictions, affects not only the Chinese financial system but also the global one. Quantitative estimates were obtained and the direction of the relationship between Chinese shadow banking activities, traditional shadow banking, and the share of the global shadow economy in the world GDP was revealed. The results of correlation analysis and econometric modelling show that the growth of shadow banking and traditional shadow banking in China reduces both the Chinese and the global shadow economy. This is due to the positive impact on the development of entrepreneurship in China, especially small and medium businesses. Since private enterprises in China are generally more efficient than state-owned enterprises, further growth in shadow banking will contribute to the optimization of the economic structure and acceleration of economic growth. Strict regulatory restrictions on shadow banking in China in the context of the growing integration of the Chinese financial system with the world can contribute to the development of negative processes in the Chinese and world economies.