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Chinese savers turn to shadow banking for higher returns. According to Moody's, the growth of core shadow banking activities in China has exceeded a cumulative 75 percent over the past two years. And as of the end ofChina's shadow banking credit accounts were estimated at Curtailing shadow banking is necessary for ensuring the stability of China's financial system because of the risks it posed outside the constraints of bank regulations; however, in an economy that relies heavily on credit expansion, such tightening measures will also weaken China's economic growth.

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