An Australian parliamentary inquiry into foreign purchases in the domestic real estate market on Friday raised concerns at Chinese property investors who obtain finance through “shadow banking” in China, local media reported.
The committee’s deputy chair, Ed Husic, said the “shadow banking” market in China is a system that usually lacks regulation and oversight.
“With the rise of the shadow banking system in China, where people are going outside of the banking system to be able to finance investment, there are some concerns about the quality of the loans and whether or not they will actually be durable,” Husic told Australian public broadcaster ABC.
“If those loans are being used to finance development in Australia, and if they fall over, what is the exposure of the Australian banking system to that?”
Full article: Property deals through China’s ‘shadow banks’ worry Australia (Want China Times)