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Publication - Dr Lerong Lu

    Shadow Banking for Cash-Strapped Entrepreneurs

    A Study of Private Lending Agreements Under Chinese Contract Law

    Citation

    Lu, L, 2018, ‘Shadow Banking for Cash-Strapped Entrepreneurs: A Study of Private Lending Agreements Under Chinese Contract Law’. Journal of Business Law., pp. 216-229

    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.

    Full details in the University publications repository