“Text message solicitations began arriving on the mobile phones of many of China’s wealthy last month, promising access to lucrative wealth management products with yields far above the government’s benchmark savings rate.  The offers are not coming from fly-by-night operators but some of China’s biggest banks. They are raising huge pools of cash to finance a relatively new and highly profitable sideline business: lending outside the scrutiny of bank regulators. The complex way they go about making off-the-balance-sheet loans is at the heart of China’s $6 trillion shadow banking industry, which the government is now trying to tame.”

http://www.nytimes.com/2013/07/02/business/global/loan-practices-of-chinas-banks-raising-concern.html?nl=todaysheadlines&emc=edit_th_20130702&pagewanted=all

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