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Chinese official: Shadow banking poses big threat

6 March 2014 Last updated at 12:00 GMT

The Chinese government is piloting a programme to register "shadow loans" - that is credit given by trusts, leasing and insurance companies or any other non-bank financial institution that perform banking functions without a banking licence.

The local official in charge, Zhou Dewen, says shadow banking can be regulated, although it poses a significant risk.

"Without any law and supervision, such huge amounts of loans will pose a big threat," he said. "It's so risky and also has caused many crises."