ANZ weighs in on shadow loans (2)

China's overall trust assets stood at 6.32 trillion yuan by the end of September, up 54 percent year-on-year, according to figures released by the China Trustee Association on November 9.

Meanwhile, WMP sales by Chinese banks totaled 12.14 trillion yuan in the first half, up 43 percent year-on-year, data from CN Benefit, a Chengdu-based wealth management consultancy, show.

So far, there is limited information available to analysts looking to get a complete picture of China's shadow financing system, and the global institutions which have attempted to measure the system's scope have produced very different results, said Zhang.

In November, the Financial Stability Board, an international organization that monitors the global financial market, reported that there was only $400 billion in China's shadow banking network. On the other hand, a recent study from UBS set the size of the network at between 13.7 trillion yuan and 24.4 trillion yuan.

As long as the many ambiguities and uncertainties surrounding China's shadow banking industry exist, the potential threat this phenomenon poses to the stability of domestic financial market will also remain unknown, cautioned Zhang.

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