Wu Xiaoling, co-head of the Tsinghua University National Institute of Financial Research, and director of the CEIBS Lujiazui Institute of International Finance releases China Financial Policy Report 2014 at the Forum. [Photo / China.org.cn]

The China Financial Policy Report 2014 was released by Wu Xiaoling, co-head of the Tsinghua University National Institute of Financial Research and Director of the CEIBS Lujiazui Institute of International Finance on May 11.

The theme of this year's report is ¡°Shadow Banking and China's Financial Structure.¡± It sheds light on the status quo and development trajectory of China's shadow banking sector, which needs a balanced and objective assessment.

The growth of shadow banking in China has been stunning. By the end of 2013, the size of the shadow banking industry reached 5.1651 trillion yuan, compared to more than 3 trillion in 2012, according to the report.

The report attributes the rapid development of shadow banking to China's financial system, which is dominated by commercial banks, while it admits that China's economic stimulus measures against the international financial crisis have also created a favorable external environment for the development of shadow banking.

The report concludes that shadow banking is a beneficial supplement to China's financial system and is an effective channel to develop direct finance. However, against the background of development and reform, the overarching task is to improve the legal framework to better regulate shadow banking.

The report was published in both Chinese and English. It is the fourth of its kind since 2011, drafted by a wide range of participants including scholars, financial practitioners and government officials.

The report is composed of two parts: a Thematic Report and a Dynamic Report. The Thematic Report focuses on key current issues as well as the trend and future for China's financial sector, and the Dynamic Report concentrates on China's financial market and financial regulation.