Financialisation in China and How to Track It.

Global Head of Research, Smartkarma

Mark Artherton

Global Head of Research

LR Research

Macroeconomics

<h2>Introduction</h2><p>The growth of financial intermediation is decelerating rapidly in China, is this the end of a failed experiment from the authorities or just a natural reaction to the aggressive clamp down on the financial sector and the imposition of capital controls?  Financial intermediation was growing too rapidly in the Chinese economy, sucking in productive resources at an ever quickening pace.  If this were to spiral out of control again we believe that this could lead to the long awaited end…</p>

IntroductionThe growth of financial intermediation is decelerating rapidly in China, is this the end of a failed experiment from the authorities or just a natural reaction to the aggressive clamp down on the financial sector and the imposition of capital controls?  Financial intermediation was growing too rapidly in the Chinese economy, sucking in productive resources at an ever quickening pace.  If this were to spiral out of control again we believe that this could lead to the long awaited end…

The End of Financial Intermediation as a Driver in China