- International Financial Law
- Financial Regulation
- Shadow Banking
- Financial Technology (Fintech)
Lu L, Private Lending in China: Practice, Law and Regulation of Shadow Banking and Alternative Finance (Routledge, 1st Edition, 2018).
Introduction: This book explores China’s private lending market from historical, economic, legal, and regulatory perspectives. Private lending refers to moneylending agreements between business borrowers and their debt investors without the involvement of banks. In China, it remains difficult for private entrepreneurs to obtain sufficient loans from state-owned banks. Thus, private lending has been a vital alternative financing channel for over 80 million businesses which are reliant on private funds as their major source of operating capital. The market volume of private financing stands at 5 trillion yuan ($783bn), making it one of the largest shadow banking systems in the world. Despite the wide popularity and systemic importance of private lending activities, they have remained outside of the official regulatory framework, leading to extra financial risks. In 2011, China’s private lending sector encountered a severe financial crisis, as thousands of business borrowers failed to repay debts and fell into bankruptcy. Lots of bosses who found it impossible to liquidate debts ran away to hide from creditors. The financial turmoil has caused substantial monetary losses for investors across the country, which triggered social unrest and undermined the financial stability.
This book is a timely work intended to demystify China’s private lending market by investigating its historical development, operating mechanism, and special characteristics. It evaluates the causes and effects of the latest financial crisis by considering a number of real cases relating to helpless investors and runaway bosses. It conducts an in-depth doctrinal analysis of Chinese laws and regulations regarding private lending transactions. It also examines China’s ongoing financial reform to bring underground lending activities under official supervision. Finally, the book points out future development paths for the private lending market. It offers suggestions for global policymakers devising an effective regulatory framework for shadow banking. It appeals to researchers, lecturers, and students in several fields, including law, business, finance, political economy, public policy, and China study.
Purchase a hard copy or Kindle edition of Private Lending in China at Amazon.
Download Dr Lu’s latest academic papers at Social Science Research Network (SSRN).
- Lu L, ‘The Rising Star in the East: Unveiling China’s Star Market, the Registration-Based IPO Regime, and Capital Markets Law Reform’, (2020) 31 International Company and Commercial Law Review 394-412.
- Lu L and Ye N, ‘Promoting High-Tech Innovations through Capital Markets Law Reform: Deciphering the Sci-Tech Innovation Board of the Shanghai Stock Exchange’ (2020) 35 Butterworths Journal of International Banking and Financial Law 140-143.
- Ye N and Lu L, ‘Building a Eurasian capital market: Understanding the operating mechanism and legal framework of Shanghai-London Stock Connect’ (2020) 35 Journal of International Banking Law and Regulation 67-74.
- Lu L and Ye N, ‘Shanghai-London Stock Connect: Operating Mechanism, Opportunities, and Challenges’ (2019) 34 Journal of International Banking and Financial Law 684-687.
- Ye N and Lu L, ‘How to Harness A Unicorn? Demystifying China’s Reform of Share Listing Rules and Chinese Depositary Receipts (CDRs)’ (2019) 30 International Company and Commercial Law Review 454-470.
- Lu L, ‘Promoting SME Finance in the Context of Fintech Revolution: A Case Study of the UK’s Practice and Regulation’ (2018) 33 Banking and Finance Law Review 317-343.
- Lu L, ‘Black Swans and Grey Rhinos: Demystifying China’s Financial Risks and the Financial Regulatory Reform’ (2018) 33 Butterworths Journal of International Banking and Financial Law 594-597.
- Lu L and Ye N, ‘Chinese Depositary Receipts: What They Are, How They Work and Why This Represents a Golden Opportunity’ (2018) 33 Butterworths Journal of International Banking and Financial Law 529-532.
- Lu L, ‘Solving the SME Financing Puzzle in the UK: Has Online P2P Lending Got the Midas Touch?’ (2018) 33 Journal of International Banking Law and Regulation 449-460.
- Lu L, ‘Shadow Banking for Cash-Strapped Entrepreneurs: A Study of Private Lending Agreements Under Chinese Contract Law’ (2018) Journal of Business Law, Issue 3, pp. 215-228.
- Lu L, ‘Book Review: Central Bank Regulation and the Financial Crisis: A Comparative Analysis’ by Miao Han, (2018) Journal of European Consumer and Market Law, Vol.7(3), pp. 130-131.
- Lu L, ‘Bitcoin: Speculative Bubble, Financial Risk and Regulatory Response’ (2018) Butterworths Journal of International Banking and Financial Law, Vol. 33(3), pp. 178-182.
- Lu L, ‘Decoding Alipay: Mobile Payments, A Cashless Society and Regulatory Challenges’ (2018) Butterworths Journal of International Banking and Financial Law, Vol. 33(1), pp. 40-43.
- Lu L, ‘How A Little Ant Challenges Giant Banks? The Rise of Alipay (Ant Financial)’s FinTech Empire and Regulatory Options’ (2018) International Company and Commercial Law Review, Vol. 29(1), pp. 12-30.
- Lu L, ‘Financial Technology and Challenger Banks in the UK: Gap Fillers or Real Challengers?’ (2017) Journal of International Banking Law and Regulation, Vol. 32(7), pp. 273-282.
- Lu L and Lu L, ‘Unveiling China’s Stock Market Bubble: Margin Financing, the Leveraged Bull and Governmental Responses’ (2017) Journal of International Banking Law and Regulation, Vol.32(4), pp. 146-160.
- Lu L, ‘Private Banks in China: Origin, Challenges and Regulatory Implications’ (2016) Banking and Finance Law Review, Vol. 31(3), pp.585-599.
- Lu L, ‘Runaway Bosses in China: Private Lending, Credit Crunches, and the Regulatory Response’ (2015) Financial Regulation International, Vol. 18(9), pp.1-13.
- Lu L, ‘The Financing Dilemma of Private Businesses in China: Runaway Bosses, Credit Crisis and Governmental Responses’ (Asian Law and Society Association Annual Conference 2016, National University of Singapore, September 2016)
- Lu L, ‘The Rise of P2P Lending: Alternative Finance for Chinese Entrepreneurs’ (The Challenges of Commercial Law in the 21st Century: ICCL 2016 Annual PGR Conference, Durham University Law School, June 2016)
- Lu L, ‘Alternative Financing for Small and Medium-sized Enterprises in China’ (7th Queen Mary Postgraduate Legal Research Conference 2016, Queen Mary University of London, June 2016)
- Lu L, ‘Financial Exclusion of Small and Medium-sized Enterprises in the UK’ (Cultures of Credit Workshop: Interdisciplinary and Comparative Perspectives on Financial Exclusion, Leeds University Business School, April 2016)
- Lu L, ‘Solving Financial Inequality for Smaller Businesses in the UK’ (CBLP Seminar, School of Law, University of Leeds, February 2016)
- Lu L, ‘Unveiling China’s Stock Market Bubble: Margin Financing and the Regulatory Response’ (International Postgraduate Legal Conference 2016: Emerging Issues in Law, University of Liverpool, January 2016)
- Lu L, ‘Challenges and Changes of Chinese Banking Sector’ (ESSL Postgraduate Research Conference 2015, University of Leeds, March 2015)
- Lu L, ‘China’s Deposit Insurance and Transformation of Banking Sector’ (CBLP Seminar, School of Law, University of Leeds, February 2015)
- Lu L,‘Runaway Bosses in China: The Prevalence of Private Loans and the Regulatory Implication’ (CBLP PhD Conference 2014, School of Law, University of Leeds, November 2014)