This from the People's Bank of China on Tuesday (via Reuters)

  • China's central bank said on Tuesday the shadow banking sector lacks sufficient regulation
  • The Bank would give more prominence to financial risk control
  • Compared with traditional bank lending, the opaque nature of shadow banking products make it easier for them to bypass regulatory requirements and provide credit to restricted areas, the People's Bank of China (PBOC) said in its annual China Financial Stability Report released online

Reuters piece is here for more