Moody's Investors Service says that shadow....>

CHINA: Moody's Investors Service says that shadow banking activity in China (A1

stable) continues to contract, with shadow banking assets as a share of GDP

dropping to around 73% at the end of June 2018 from 79% at the end of 2017 and

the peak of 87% at the end of 2016.

- In absolute terms, shadow banking assets fell by RMB2.7 trillion in the first

six months of 2018 to RMB62.9 trillion.

- "We expect the contraction in shadow banking assets to moderate in the rest of

2018, as regulators are taking a more gradualist approach in response to slower

domestic credit growth and a more challenging external environment," says

Michael Taylor, a Moody's Managing Director and Chief Credit Officer for Asia

Pacific.