Shadow Banking for Cash-Strapped Entrepreneurs: A Study of Private Lending Agreements Under Chinese Contract Law

Lerong Lu

Research output: Contribution to journalArticle (Academic Journal)peer-review

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Abstract

This article discusses and analyses one of the most popular commercial contracts in China: private lending agreement. It refers to moneylending arrangements between a business borrower and its debt investors. Millions of private businesses in China, having limited access to the state-dominated banking sector, rely on private financing to borrow funds. The market volume of the private lending sector amounts to CNY 4 trillion (USD 580.6 billion). In 2014, there were 1.02 million private lending-related civil cases heard by Chinese courts.
Original languageEnglish
Pages (from-to)216-229
Number of pages15
JournalJournal of Business Law
Issue numberIssue 3
Publication statusPublished - 1 Mar 2018

Keywords

  • Contract law
  • commercial contract
  • private lending
  • private financing
  • China
  • shadow banking
  • corporate finance
  • financial regulation

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