Traditional lending in China sees a 'renaissance' as shadow banking slows down

Net corporate bond issuance has been increasing.

China’s giant shadow banking industry shrank for the first time in nine months during July -- evidence Beijing’s campaign to quash risks to the financial system may be starting to bear fruit, according to Bloomberg.

"At the same time, however, traditional forms of lending are seeing a renaissance. Net corporate bond issuance has been jumping as non-financial corporations opt for cheaper sources of finance than borrowing in the shadow banking sector, where costs have surged amid the government crackdown," said the Bloomberg report.

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