It was touched on early on

It was touched on early on the thred – China's shadow banking system. It popped up again on an article i'm reading on China's property bubble.

the authorities set the interest rate on deposit accounts at 0.72 per cent and left it there. By 2008, inflation was 7.9 per cent. So the real rate of return on a deposit was -7.2 per cent – which helped to dampen consumption to a record low for any country: 34 per cent of GDP.This must have seemed pretty smart to the authorities when they first thought of it. But there is no such thing as an economic policy that doesn’t fall foul of the law of unintended consequences. Instead of accepting this massive dose of financial repression, the Chinese became a nation of property speculators and shadow bankers.They borrowed money short term from unofficial lenders [/quote] http://www.ft.com/intl/cms/s/0/965c4744-8fb4-11e1-98b1-00144feab49a.html?siteedition=intl#axzz35kOePnl2